Defined Contribution

There are three separate defined contribution sections in the Invensys Pension Scheme. They are all closed to new contributions, but you are able to make changes to your investment options within your section. The amount of benefit payable to you from these funds when you retire will depend on:

  • The amount of contributions you (and your employer) have paid in;
  • The investment returns achieved on those contributions, after charges have been deducted; and
  • The cost of buying benefits when you retire.

When you retire, you may choose to use this fund to increase the pension we will pay you from the Defined Benefit (DB) section of the Scheme, or you may take some or all of your fund as a cash lump sum, subject to HMRC limits. You also have the option to transfer your fund to another pension arrangement, which may allow you greater freedom in how you take your benefits.

We recommend that you seek independent financial advice before making any decision to transfer. You will have to meet the cost of taking advice.

More details on each section are available by clicking on the links:


Defined Contribution (DC) Section

The DC section was introduced in April 2007 and closed to new contributions when the DB section closed in March 2015. Members of the DC section have the option to choose from a selection of funds – known as self-selection – or to invest in one of the standard funds made available by the Trustee. The standard retirement age is 65 but you are able to choose a Target Retirement Date (TRD) if you plan to retire earlier or later than 65. This page provides some information on the funds available to you and links to the investment manager fact-sheets.

Standard DC Funds

There are two standard funds that are made available by the Trustee, where your investment is gradually moved from higher risk investments (equities) to lower risk investments (gilts and cash) as you approach your target retirement date. This is known as ‘lifestyling’ and means that you don’t have to actively manage the investment of your funds. The funds are provided by Legal & General Investment Management. The two options are:

Option 1 results in a fund made up of gilts and cash, so may be better for you if you want to take 25% of the fund as cash and use the remaining 75% to buy an annuity:

DC image one.jpg

Option 2 (which is now the default option for the DC section) results in a fund made up entirely of cash, so would be better for you if you want to use it as part or all of your tax free cash sum at retirement:

DC image two.jpg

Details of past performance of the funds included in the standard options can be found by clicking on the links below.

The annual charges (Total Expense Ratio or ‘TER’) for the funds used with the standard profiles are set out in the table below. The TER gives an indication of the total cost associated with managing the fund, so the lower the TER, the lower the management charges deducted from the fund.

Table 1 DC page IPS.PNG

Self-Select Funds

If you prefer to manage the investment of your funds yourself, you are able to select from a range made available by the Trustee with advice from its investment advisers. If you choose to self-select, your funds will remain invested in your chosen options and will not be automatically moved into lower risk investments as you approach your target retirement date. You can opt back into one of the standard funds at any time, if you wish. To change your investment choices, download and complete the form and return it to the Administrator.

Details of the self-select funds, including past performance, are available by clicking on the links below.

The annual charges (Total Expense Ratio or ‘TER’) for the self-select funds are set out in the table below. The TER gives an indication of the total cost associated with managing the fund, so the lower the TER, the lower the management charges deducted from the fund.

Table 2 DC page IPS.PNG

Additional Voluntary Contributions (AVC)

If you chose to make AVCs while you were an active member of the Scheme, you will have a fund invested with one or more of the AVC providers – Legal & General Investment Management, Prudential and Equitable Life. Most of the AVC funds are now invested with Legal & General Investment Management. Members with AVC pots have the option to choose from a selection of funds – known as self-selection – or to invest in one of the standard funds made available by the Trustee. The standard retirement age is 65 but you are able to choose a Target Retirement Date (TRD) if you plan to retire earlier or later than 65. This page provides some information on the funds available to you and links to the investment manager fact-sheets. 

Standard AVC Funds

There are two standard funds that are made available by the Trustee, where your investment is gradually moved from higher risk investments (equities) to lower risk investments (gilts and cash) as you approach your target retirement date. This is known as ‘lifestyling’ and means that you don’t have to actively manage the investment of your funds. The funds are provided by Legal & General Investment Management. The two options are:

Option 1 results in a fund made up of gilts and cash, so may be better for you if you want to take 25% of the fund as cash and use the remaining 75% to buy an annuity:

DC image three.jpg

Option 2 (which is now the default option for AVC members) results in a fund made up entirely of cash, so would be better for you if you want to use it as part or all of your tax free cash sum at retirement:

DC image four.jpg

Details of past performance of the funds included in the standard options can be found by clicking on the links below.

The annual charges (Total Expense Ratio or ‘TER’) for the funds used with the standard profiles are set out in the table below. The TER gives an indication of the total cost associated with managing the fund, so the lower the TER, the lower the management charges deducted from the fund.

Table 3 DC page IPS.PNG

Self-Select Funds

If you prefer to manage the investment of your funds yourself, you are able to select from a range made available by the Trustee with advice from its investment advisers. If you choose to self-select, your funds will remain invested in your chosen options and will not be automatically moved into lower risk investments as you approach your target retirement date. You can opt back into one of the standard funds at any time, if you wish. To change your investment choices, download and complete the form and return it to the Administrator.

Details of the self-select funds, including past performance, are available by clicking on the links below.

The annual charges (Total Expense Ratio or ‘TER’) for the self-select funds are set out in the table below. The TER gives an indication of the total cost associated with managing the fund, so the lower the TER, the lower the management charges deducted from the fund.

Table 4 DC page IPS.PNG

Protected Rights (PR)

Some former members of the Siebe and Eurotherm pension schemes were contracted out of the State pension scheme on a money purchase basis. When you left the scheme, you either opted to transfer your benefit to another pension scheme or to take a refund of contributions. At the time, you weren’t allowed to transfer or take a refund of the contracted out part of your scheme benefit, known as your Protected Rights fund, so it had to remain with the Scheme. The investment options available for your PR fund are:

LGIM Multi-Asset Fund

The annual charges (Total Expense Ratio or ‘TER’) for this fund is 0.25% per year. The TER gives an indication of the total cost associated with managing the fund, so the lower the TER, the lower the management charges deducted from the fund.

Or

A fund made available by the Trustee that gradually moves your investment from higher risk assets (equities) to lower risk assets (gilts and cash) as you approach your target retirement date. This option results in a fund made up entirely of cash:

DC image five.png

The annual charges (Total Expense Ratio or ‘TER’) for the funds used with the lifestyle profile are set out in the table below.

Table 5 DC page IPS.PNG