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Hewlett-Packard Investment Scheme
Rules effective from 1 January 2010
Linklaters LLPOne Silk StreetLondon EC2Y 8HQ
Telephone (44-20) 7456 2000Facsimile (44-20) 7456 2222
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CONTENTS
Rule Page
Introduction...................................................................................................................................... 1
1 Meaning of words used ........................................................................................................ 2
2 Joining the Scheme .............................................................................................................. 5
2.1 Joining for retirement benefits................................................................................................. 52.2 Employees entitled to death in service benefits only .............................................................. 5
3 Contributions by Employers and Members........................................................................ 6
3.1 Contributions by Members ...................................................................................................... 63.2 Contributions by Employers .................................................................................................... 63.3 Voluntary contributions............................................................................................................ 83.4 “Salary Sacrifice” for Member pension contributions .............................................................. 8
4 Member’s Retirement Account ............................................................................................ 9
4.1 Value of Member’s benefits..................................................................................................... 94.2 Allocation of assets to Member’s Retirement Account............................................................ 94.3 Protected Rights Account........................................................................................................ 94.4 Investment of Member’s Retirement Account ....................................................................... 104.5 Allocation of expenses .......................................................................................................... 104.6 No segregation of assets ...................................................................................................... 10
5 Member’s retirement benefits .............................................................................................11
5.1 Date when benefits start ........................................................................................................115.2 Using the Member’s Retirement Account.............................................................................. 12
6 Benefits on Member’s death .............................................................................................. 13
6.1 Benefits on death in Employment before age 75 .................................................................. 136.2 Benefits on death before Pension Payment Date but after leaving Employment ................. 166.3 Payment of survivors’ pensions ............................................................................................ 176.4 Payment of lump sum death benefits.................................................................................... 176.5 Commutation of pension ....................................................................................................... 17
7 Early leavers ........................................................................................................................ 18
7.1 Preserved benefits ................................................................................................................ 187.2 Protected rights pensions...................................................................................................... 187.3 Preservation requirements .................................................................................................... 19
8 Right to transfer or buy-out ............................................................................................... 20
9 Members away from work .................................................................................................. 21
9.1 General principle ................................................................................................................... 219.2 Family leave .......................................................................................................................... 21
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10 Ceasing to be eligible ......................................................................................................... 22
11 Opting out ............................................................................................................................ 22
12 Special provisions for certain Members ........................................................................... 23
12.1 Members who were formerly members of the Hewlett-Packard Limited Retirement Benefits Plan ......................................................................................................................... 23
12.2 Members who are receiving benefits under an Employer’s long-term disability benefits scheme.................................................................................................................................. 23
12.3 Members with special terms.................................................................................................. 23
13 General rules about pensions............................................................................................ 24
13.1 Purchase of pensions............................................................................................................ 2413.2 Paying pensions from the Scheme ....................................................................................... 2413.3 Pension increases................................................................................................................. 24
14 General rules about benefits.............................................................................................. 25
14.1 Recovery of tax and other charges ....................................................................................... 2514.2 Loss of right to benefits ......................................................................................................... 2514.3 Beneficiary who is incapable................................................................................................. 2614.4 Tax status of the Scheme...................................................................................................... 2614.5 Pension sharing on divorce................................................................................................... 2614.6 Contracting-out...................................................................................................................... 2714.7 Evidence of health................................................................................................................. 27
15 Discretionary benefits......................................................................................................... 28
16 Transfers to and from the Scheme.................................................................................... 29
16.1 Transfers from other pension schemes and arrangements .................................................. 2916.2 Transfers to other pension schemes and arrangements ...................................................... 2916.3 Partial transfers while still in Employment............................................................................. 29
17 Trustees................................................................................................................................ 30
17.1 Appointment and removal ..................................................................................................... 3017.2 Exercise of powers................................................................................................................ 3017.3 Trustee charges .................................................................................................................... 3017.4 Limit of liability ....................................................................................................................... 3017.5 Indemnity and protection from loss ....................................................................................... 3117.6 Trustee insurance.................................................................................................................. 31
18 Assets of the Scheme......................................................................................................... 32
18.1 Assets held on trust............................................................................................................... 3218.2 Use of assets......................................................................................................................... 3218.3 Scheme expenses and liabilities ........................................................................................... 3218.4 Accounts................................................................................................................................ 3318.5 Surplus .................................................................................................................................. 33
19 Participating Employers ..................................................................................................... 34
19.1 Inclusion in the Scheme........................................................................................................ 3419.2 Ceasing to participate............................................................................................................ 34
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20 New Principal Employer ..................................................................................................... 34
21 Termination of the Scheme ................................................................................................ 35
21.1 Time of termination................................................................................................................ 3521.2 Effect of termination .............................................................................................................. 3521.3 Reopening the Scheme......................................................................................................... 35
22 Winding up the Scheme ..................................................................................................... 36
22.1 Time of winding up ................................................................................................................ 3622.2 Use of assets......................................................................................................................... 3622.3 Securing benefits with insurance policies and annuity contracts.......................................... 3622.4 Winding up lump sums.......................................................................................................... 3622.5 Transfers to other pension schemes and arrangements ...................................................... 3722.6 Surplus assets....................................................................................................................... 37
23 Changing the Rules ............................................................................................................ 38
24 Governing law ..................................................................................................................... 38
Appendix: HP Scheme Members with special terms................................................................. 39
Schedule 1 BT Members ................................................................................................................. 39Schedule 2 Credit Suisse Members ................................................................................................ 42Schedule 3 Tarmac Members.......................................................................................................... 43Schedule 4 Indigo UK Members...................................................................................................... 44Schedule 5 Mercury Members ........................................................................................................ 45Schedule 6 Peregrine Members...................................................................................................... 48Schedule 7 Valliant Members .......................................................................................................... 50Schedule 8 West LB Members ........................................................................................................ 52Schedule 9 Bank of Ireland Members ............................................................................................. 54Schedule 10 EYP Members ............................................................................................................ 56Schedule 11 Colubris Members ...................................................................................................... 58Schedule 12 Gingko Members ........................................................................................................ 59Schedule 13 Unilever Members ...................................................................................................... 61
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Hewlett-Packard Investment Scheme
These Rules of the Hewlett-Packard Investment Scheme (the “Scheme”) are made as a deed on 2009 between:
(1) Hewlett-Packard Limited; and
(2) Hewlett-Packard Investment Scheme Pension Company Limited.
Hewlett-Packard Investment Scheme Pension Company Limited is the first trustee of the Scheme.
Introduction
These Rules are made to set up the Scheme with effect from 1 January 2010.
The Hewlett-Packard Investment Scheme has two main categories of Member, HP Scheme Members and EDS Scheme Members. Hewlett-Packard will designate which category each Member is assigned to.
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1 Meaning of words used
“Annual Salary” means:
(a) for HP Scheme Members, the amount determined by Hewlett-Packard and notified to the Trustees and the Member concerned as being the yearly rate of the Member’s annual salary excluding any director’s fees, shift allowances, overtime and other fluctuating emoluments or, in the case of a Member who participates in a sales incentive plan, the Member’s annual earnings objective.
Note: Annual Salary will, for certain HP Scheme Members who are also BT Members, include a London weighting allowance, as described in Schedule 1 of the Appendix; and
(b) for EDS Scheme Members, the amount determined by Hewlett-Packard and notified to the Trustees and the Member concerned as being the yearly rate of the Member’s annual salary excluding any director’s fees, shift allowances, overtime and other fluctuating emoluments (except (i) for Aviva Members it shall include any increased working hours allowance and shift allowances as determined by Hewlett-Packard and (ii) for HRO Members it shall include annual bonus payments as directed by Hewlett-Packard).
Annual Salary for EDS Scheme Members will be subject to the Earnings Cap (except for Pre 1989 EDS Scheme Members and HRO Members).
“Aviva Member” means an EDS Scheme Member who has been designated by Hewlett-Packard as an Aviva Member.
“Contracting-out Laws” means the laws on contracting-out in Part 3 of the Pensions Schemes Act 1993.
“Dependant” means anyone who is:
(a) financially dependent on the Member or other person concerned, or was so dependent at the time of that person's death. This may include anyone who shares living expenses with, or receives financial support from, the Member or other person and whose standard of living would be affected by the loss of that person's financial contribution or financial support; or
(b) dependent on the Member or other person concerned because of disability at the time of that person’s death.
The Trustees' decision as to whether someone is another person's Dependant will be final.
“Earnings Cap” means
(a) if HM Revenue & Customs continues to issue orders or other communications as if Section 590C of the Income and Corporation Taxes Act 1988 had not been repealed, then the Earnings Cap at any given date shall be the figure specified in the then current order or communication; or
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(b) if HM Revenue & Customs ceases to issue such orders or communications, the Earnings Cap in any tax year (the “Tax Year”) will be the Earnings Cap for the previous tax year increased by the percentage increase in the retail prices index over a 12 month period ending on the 30 September immediately preceding the Tax Year, provided that:
(i) if the figure arrived at is not a multiple of £600, it shall be rounded up to the nearest amount that is such a multiple; and
(ii) if the retail prices index for the September preceding the Tax Year is not higher than it was for the previous September the figure for the Tax Year shall be the same as the figure for the previous Tax Year.
“EDS Scheme Member” means a Member who has been designated by Hewlett-Packard as an EDS Scheme Member.
“Employee” means any employee of an Employer.
“Employer” means an employer participating in the Scheme.
“Employment” means employment with the Employers.
“Hewlett-Packard” means Hewlett-Packard Limited.
“HP Scheme Member” means a Member who has been designated by Hewlett-Packard as a HP Scheme Member.
“HRO Member” means an EDS Scheme Member who has been designated by Hewlett-Packard as a HRO Member.
“Incapacity” means physical or mental impairment which prevents (and will continue to prevent) a Member from following his or her normal occupation or seriously impairs the Member’s earning capacity.
Before deciding whether a Member is suffering from Incapacity, the Trustees must obtain evidence from a registered medical practitioner that the Member is (and will continue to be) incapable of carrying on his or her occupation. The Trustees’ decision as to whether a Member is suffering from Incapacity will then be final.
“Member” means a person who is included in the Scheme for retirement benefits as described in Rule 2.1 (joining for retirement benefits).
“Pensionable Children” means children of the Member, the Member’s stepchildren (but only if they are financially dependent on the Member at the date of the Member’s death), children legally adopted by the Member, and any other children whom the Trustees are satisfied were dependent on the Member at the time of his or her death and whom the Trustees agree to treat as Pensionable Children.
“Pension Payment Date” means a Member’s Pension Payment Date as described in Rule 5.1 (date when benefits start).
“Pre 1989 EDS Scheme Member” means an EDS Scheme Member who joined the Electronic Data Systems Investment Plan prior to 1 June 1989 (or who joined after that date but was granted “non capped” status) and who was then an active member of the Electronic Data Systems Investment Plan until he or she joined the Scheme on 1 January 2010.
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“Preservation Laws” means the laws on preservation of benefit in Chapter 1 of Part 4 of the Pension Schemes Act 1993.
“Retirement Account” means a Member’s Retirement Account as described in Rule 4 (Member’s Retirement Account).
“Salary Sacrifice” means the flexible benefit arrangements operated by Hewlett-Packard, the terms of which are notified to Members.
Note: Hewlett-Packard may operate different flexible benefit arrangements for different Members. Members will be notified which arrangement applies to them.
“Scheme” means the Hewlett-Packard Investment Scheme.
“Spouse” means a person who, at the date of the Member’s death, was legally married to the Member or was the Member’s legal civil partner.
“Transfer Value Laws” means the laws on transfer values in Chapter 4 of Part 4 of the Pension Schemes Act 1993.
“Trustees” means the trustee or trustees for the time being of the Scheme.
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2 Joining the Scheme
2.1 Joining for retirement benefitsAn Employee is eligible to join the Scheme if the Employee’s contract of service says that he or she is eligible to join the Scheme.
However, an Employee cannot join the Scheme after reaching age 75.
The Trustees will include eligible Employees in the Scheme automatically on the date they become eligible to join. However, the Trustees will do this only for Employees who have been told in writing that they are to be included in the Scheme and who have not objected.
An Employee who is not included in the Scheme automatically may join later only with the specific permission of Hewlett-Packard and the Trustees and on such terms as they determine.
Employees must provide the Trustees with any information they ask for (including evidence of good health). An Employee’s benefits may be restricted until the Employee has provided the Trustees with any information they ask for.
2.2 Employees entitled to death in service benefits onlyThe following Employees (who die in service before age 75) will, unless Hewlett-Packard decides otherwise, be included in the Scheme for the lump sum death-in-service benefitsdescribed in Rule 6.1.2 (benefits on death in Employment before age 75 - lump sum benefit):
2.2.1 an Employee who chooses not to join the Scheme;
2.2.2 an Employee who has chosen a Pension Payment Date under Rule 5.1 (date when benefits start) which is before he or she leaves Employment;
2.2.3 an Employee who has chosen to use 50% only of his or her Retirement Account as described in Rule 5.1.3 (flexible retirement);
2.2.4 an Employee who has opted out of the Scheme in accordance with Rule 11 (opting out);
2.2.5 an Employee who was a Member of the Hewlett-Packard Limited Retirement Benefits Plan (“HP Plan”) and who has chosen to receive his or her pension under the HP Plan in more than one tranche, as described in General Rule 8.2 of the HP Plan (flexible payment of Member’s benefits); and
2.2.6 any other Employee as so determined by Hewlett-Packard,
provided he or she is not entitled to lump sum death-in-service benefits under any other pension scheme operated by Hewlett-Packard or the Employers.
The lump sum death-in-service benefit described in Rule 6.1.2 (benefits on death-in-Employment before age 75 - lump sum benefit) will be calculated and paid as if the Employee were a HP Scheme Member or EDS Scheme Member, as decided by Hewlett-Packard.
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3 Contributions by Employers and Members
3.1 Contributions by Members Members are not required to contribute to the Scheme.
Note 1: Members who participate in Salary Sacrifice for pension contribution purposesaccept a reduction in their Annual Salary in return for retirement benefits in the Scheme. Members can choose (within certain limits) the amount of the reduction. This reduction will determine the level of Employer contributions, as described in Rule 3.2 (contributions by Employers).
Note 2: Not all Members participate in Salary Sacrifice for pension contribution purposes.Details are set out in the relevant Schedules in the Appendix.
3.2 Contributions by EmployersEach Employer will contribute to the Scheme in respect of each Member in its Employmentat the rates described in Rule 3.2.1 and 3.2.2 below, as appropriate.
3.2.1 Employer contributions for HP Scheme Members and EDS Scheme Members
Each Employer will contribute to the Scheme in respect of each Member in its Employment (except those Members to which Rule 3.2.2 below applies) who is aged 75 or less in accordance with the following table or at such other rate as the Employer decides from time to time and notifies to the Member and the Trustees in writing.
Amount of pay reduction chosen by Member under Salary Sacrifice
(expressed as a percentage of Annual Salary)
Resultant contribution payable by Employer (expressed as a
percentage of Annual Salary)
3% 6%
4% 8%
5% 10%
6% 12%
It may be that the Member has chosen an amount greater than 6% of Annual Salary for pension contribution purposes under Salary Sacrifice. If so, the contribution payable by the Employer will increase from 12% by a further 1% for each additional 1% of Annual Salary chosen by the Member (up to the maximum permitted under Salary Sacrifice from time to time). These additional Employer contributions above 12% will, for the purposes of Rule 6.1.1 (benefits on death in Employment before age 75 - benefits payable) be known as “Salary Sacrifice AVCs”.
Members who at any time choose a reduction of less than 3% of Annual Salary will be treated as having left Employment unless otherwise agreed by Hewlett-Packard.The contribution payable for the month in which the Member leaves Employment or dies will be a proportionate amount calculated on a daily basis, unless the Trustees decide otherwise.
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3.2.2 Employer contributions for HP Scheme Members who joined the Hewlett-Packard-Limited Pension Scheme before 1 January 2009
For those HP Scheme Members who joined the Hewlett-Packard Limited Pension Scheme before 1 January 2009 and who remained an active member until he or she joined the Scheme on 1 January 2010, the Employer will contribute in respect of the Member in accordance with the table set out below.
Amount of pay reduction chosen by Member under Salary Sacrifice
(expressed as a percentage of Annual Salary)
Resultant contribution payable by Employer (expressed as a
percentage of Annual Salary)
1% 4%
2% 6%
3% 8%
4% 10%
It may be that the Member has chosen an amount greater than 4% of Annual Salary under Salary Sacrifice. If so, the contribution payable by the Employer will increase from 10% by a further 1% for each additional 1% of Annual Salary chosen by the Member (up to the maximum permitted under Salary Sacrifice from time to time). These additional Employer contributions above 10% will, for the purposes of Rule 6.1.1 (benefits on death in Employment before age 75 - benefits payable) be known as “Salary Sacrifice AVCs”.
Members who at any time choose a reduction of less than 1% of Annual Salary will be treated as having left Employment unless otherwise agreed by Hewlett-Packard.The contribution payable for the month in which the Member is treated as having left Employment or dies will be a proportionate amount calculated on a daily basis, unless the Trustees decide otherwise.
Each Employer will also contribute to the Scheme at a rate that is sufficient to enable the Trustees to provide the death-in-service benefits payable under Rule 6.1 (benefits on death in Employment before age 75) for its Employees. If the Trustees agree, the Employers may instead pay premiums directly to the insurance company with which the benefits are insured.
An Employer’s contributions to the Scheme must be at least equal to the minimum payments required in respect of each of its Employees whose employment is contracted out by reference to the Scheme. These minimum payments are the amount by which the total National Insurance contributions payable by the Employer and the Employee are less than would have been the case if the Employee has not been contracted out.
If the Trustees have prepared a payment schedule as required by Section 87 of the Pensions Act 1995 (Schedules of payments to money purchase schemes), the Employers must contribute to the Scheme in accordance with such schedule.
Note 1: The amount of the pay reduction chosen by the Member under Salary Sacrifice is for the purposes of determining the Employer contribution only. It is not an additional contribution to the Scheme.
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Note 2: Different Employer contributions apply to certain categories of Members, as described in the Schedules to Appendix.
Note 3: The obligation on the Employer to contribute will be satisfied if an equivalent amount is credited to Retirement Accounts in accordance with Rule 18.5 (surplus).
3.3 Voluntary contributionsA Member in Employment may pay voluntary contributions to the Scheme on a basis agreed with the Trustees. If the Trustees allow a Member to pay voluntary contributions, they may impose any conditions they think reasonable (including as to amounts that can be paid, the time at which payments can be paid, and the method of payment).
Each Member’s voluntary contributions will be allocated to the Member’s Retirement Account. The proceeds will be used to provide additional benefits for, or in respect of, the Member in accordance with Rule 5.2 (using the Member’s Retirement Account).
Note: Voluntary contributions made by the Member under this Rule 3.3 are made through normal payroll deduction and are known as “Non Salary Sacrifice AVCs”.
3.4 “Salary Sacrifice” for Member pension contributionsTo ensure that a Member’s benefits under the Scheme are not affected by a Memberparticipating in Salary Sacrifice, “Annual Salary”, at any date and for any period while a Member participates in Salary Sacrifice, will, unless Hewlett-Packard decides otherwise,include an amount by which the Member’s Annual Salary is reduced under Salary Sacrifice.
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4 Member’s Retirement Account
4.1 Value of Member’s benefits The value of the benefits provided for, and in respect of, each Member under the Scheme (except for benefits on death-in-service under Rule 6.1 (benefits on death in Employmentbefore age 75) and on leaving Employment in the circumstances described in Rule 7.2(protected rights pensions)) will be determined by reference to the realisable value of the Member’s Retirement Account at the date on which the benefits are provided.
4.2 Allocation of assets to Member’s Retirement AccountThe Trustees will allocate to each Member’s Retirement Account:
4.2.1 the Member’s own contributions (if any) to the Scheme made under Rule 3.1 (contributions by Members) and Rule 3.3 (voluntary contributions);
4.2.2 the contributions paid by the Employer (or credited by the Trustees on behalf of the Employer) in respect of the Member under Rule 3.2 (contributions by Employers);
4.2.3 any additional contributions paid by the Employer (or credited by the Trustees on behalf of the Employer) in respect of the Member under Rule 12.1.2 (Members who were formerly members of the Hewlett-Packard Limited Retirement Benefits Plan-contributions) or Rule 15 (discretionary benefits); and
4.2.4 any assets or surrender values accepted by the Trustees in respect of the Member under Rule 16.1 (transfers from other pension schemes and arrangements).
If the Member’s Employment is contracted-out by reference to the Scheme, the Trustees will also allocate to the Member’s Retirement Account any age-related payments (as mentioned in Rule 4.3.2) and any minimum contributions (as mentioned in Rule 4.3.3).
4.3 Protected Rights AccountThe Trustees will maintain a Protected Rights Account for each Member who has been in contracted-out employment by reference to the Scheme or in respect of whom the Trustees have accepted a transfer of “protected rights” (as defined in the Contracting-out Laws). The Protected Rights Account forms part of (and is included in) the Member’s Retirement Account.
The Member’s “protected rights” are the Member’s rights to the money purchase benefits which derive from the Member’s Protected Rights Account.
The Trustees will allocate to each Member’s Protected Rights Account:
4.3.1 any minimum payments (as defined in the Contracting-out Laws) made by theEmployer in respect of the Member and by the Member;
4.3.2 any age-related payments made to the Trustees by HM Revenue & Customs under Section 42A(3) of the Pension Schemes Act 1993 (“age-related payments”) in respect of the Member;
4.3.3 any minimum contributions paid to the Trustees in accordance with regulation 12(5) of the Personal Pension Schemes (Appropriate Schemes) Regulations 1997; and
4.3.4 any assets or surrender values referred to in Rule 4.2.4 so far as they are attributable to protected rights, guaranteed minimum pensions or “section 9(2B) rights” (as defined in the Contracting-out Laws).
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Minimum payments must be invested on behalf of the Member within one month of the end of the income tax month to which they relate. Age-related payments must be invested on behalf of the Member within one month of the date of payment by the Secretary of State.
Irrespective of any other provisions of the Rules, the Trustees must use the Member’s Protected Rights Account to provide benefits in accordance with the Contracting-out Laws.
4.4 Investment of Member’s Retirement AccountA Member may choose to link the value of his or her Retirement Account to one or more investment options offered by the Trustees from time to time. If a Member does not choose an investment option, the Trustees will choose for the Member. The Trustees will adjust the value of each Member’s Retirement Account in line with changes in the value of the investment options to which the Member’s Retirement Account is linked.
Unless the Trustees agree otherwise, a Member who has not reached his or her Pension Payment Date may switch between the available investment options offered by the Trustees. Such switches may apply to amounts already allocated to Retirement Accounts as well as to amounts to be allocated in future. Switches will be subject to any restrictions or conditions (including charges or transaction costs) that the Trustees may impose from time to time. If the Trustees so decide, any charges or transaction costs that become payable may be deducted from the Member’s Retirement Account.
The Trustees may change the investment options available under the Scheme at any time. In particular, the Trustees may withdraw any investment option at any time for amounts already allocated to Retirement Accounts, as well as for amounts to be allocated in future.If the Trustees withdraw an investment option, Members must choose an alternative investment option unless the Trustees decide otherwise. If the Trustees decide that a Member will not be able to continue to link the value of his or her Retirement Account to a withdrawn investment option, the Member may choose an investment option from those offered by the Trustees. If the Member does not choose an alternative investment option, the Trustees will choose for the Member.
The Trustees (and officers and employees of a corporate trustee) will not be liable for any loss arising from a choice of any investment option.
4.5 Allocation of expensesTo the extent that they are not paid by the Employers (or credited on behalf of the Employers), the Trustees will allocate to each Member’s Retirement Account a fair share(calculated on a basis that the Trustees consider reasonable) of any expenses and liabilities paid from the Scheme’s assets under Rule 18.3 (Scheme expenses and liabilities). If the Member’s Employment is contracted-out by reference to the Scheme, the Trustees will allocate an appropriate proportion of these expenses to the Member’s Protected Rights Account.
4.6 No segregation of assetsThe allocation of contributions to a particular Member’s Retirement Account, and the linking of a Member’s Retirement Account to the value of particular investments, is for benefit calculation purposes only. All the assets of the Scheme are held as a common trust fund from which all the benefits are provided. No Member or other person entitled to benefits is entitled to any specific assets of the Scheme.
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5 Member’s retirement benefits
5.1 Date when benefits startA Member’s Pension Payment Date is the date the Trustees use a Member’s Retirement Account to provide retirement benefits for the Member. This will be the Member’s 65th
birthday unless the Member notifies the Trustees that he or she does not want his or her benefits paid at that date. A Member may choose an alternative date as set out in Rules 5.1.1, 5.1.2 and 5.1.3 below.
The Pension Payment Date may be before the Member leaves Employment. If this is the case, the Member will be treated as if he or she had left Employment. In particular, no further contributions will be payable by the Member or by the Employer under Rule 3 (contributions by Employers and Members) after the Pension Payment Date. The Member will, however, still be entitled to benefits under Rule 2.2 (Employees entitled to death in service benefits only) as long as he or she actually remains in Employment. The Member may only rejoin the Scheme for retirement benefit purposes with the specific permission of Hewlett-Packard.
5.1.1 Early retirement - payment before age 65
If the Member has reached age 50 (age 55 after 6 April 2010 unless the Member has a protected pension age in accordance with paragraphs 21 to 23A of Schedule 36 to the Finance Act 2004) or is suffering from Incapacity, the Member’s Pension Payment Date may, with the consent of the Employer, be any date chosen by the Member before age 65.
5.1.2 Late retirement - payment after age 65
If the Member stays in Employment after reaching age 65, the Member’s Pension Payment Date may be any date chosen by the Member (subject to being no later than the Member’s 75th birthday). If the Member leaves Employment at age 65 or at any time after age 65 before choosing a Pension Payment Date and does not want his or her benefits to start immediately, Rule 7 (early leavers) will apply and a later Pension Payment Date may be chosen in accordance with that Rule.
5.1.3 Flexible retirement
With the consent of the Trustees and Hewlett-Packard, a Member in Employment may request the Trustees to use 50% of his or her Retirement Account (before commutation) as described in Rule 5.2 (using the Member’s Retirement Account). The Member’s Pension Payment Date in respect of the 50% used will be a date agreed between the Member and the Employer but must be after reaching age 50 (age 55 after 6 April 2010 unless the Member has a protected pension age inaccordance with paragraphs 21 to 23A of Schedule 36 to the Finance Act 2004) and before the Member’s 75th birthday. A Member choosing this option will be treated as having left Employment in respect of the remaining 50% and Rule 7 (early leavers) will apply separately in respect of it. However, the Member will be entitled to a benefit under Rule 2.2 (Employees entitled to death in service benefits only) as long as he or she actually remains in Employment. The Member may only rejoin the Scheme for retirement benefit purposes with the specific permission of Hewlett-Packard.
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5.2 Using the Member’s Retirement AccountThe Trustees will use the Member’s Retirement Account (or a part of it in accordance withRule 5.1.3 (flexible retirement)) to provide benefits in one or more of the following forms, as requested by the Member:
5.2.1 a pension payable to the Member for life, starting on his or her Pension Payment Date;
5.2.2 a lump sum payable to the Member on his or her Pension Payment Date;
5.2.3 pensions or lump sums payable on the Member’s death.
These benefits must be authorised for the purposes of Part 4 of the Finance Act 2004. If the Trustees agree, the Member may choose benefits in some other form so long as the benefits are authorised for the purposes of Part 4 of the Finance Act 2004.
However, a Member’s Protected Rights Account must be used to provide benefits in accordance with the Contracting-out Laws.
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6 Benefits on Member’s death
6.1 Benefits on death in Employment before age 756.1.1 Benefits payable
If a Member dies in Employment before age 75, the following death-in-service benefits will be paid:
(a) a lump sum calculated in accordance with Rule 6.1.2 (lump sum benefit) below; and
(b) for Members who were either (1) active members of the Hewlett-Packard Limited Pension Scheme immediately before joining the Scheme on 1 January 2010 or (2) were active members of the Electronic Data Systems Investment Plan on 31 March 2006 and who remained an active memberuntil they joined the Scheme on 1 January 2010:
(i) a Spouse’s pension calculated in accordance with Rule 6.1.3Spouse’s pension) below; and
(ii) a children’s pension calculated in accordance with Rule 6.1.4(children’s pensions) below.
The benefits must all be authorised for the purpose of Part 4 of the Finance Act 2004.
The Member’s Retirement Account will fall into the general assets of the Scheme(and will form part of the Surplus Fund as described in Rule 18.5 (surplus)) except for the following elements of the Member’s Retirement Account (the “ExcludedExcess Value”):
(i) unless Hewlett-Packard determines otherwise, any assets or surrender values accepted by the Trustees in respect of the Member under Rule 16.1 (transfers from other pension schemes and arrangements);
(ii) the Member’s Non Salary Sacrifice AVCs made under Rule 3.3 (voluntary contributions) and any Salary Sacrifice AVCs made under Rule 3.2.1(Employer contributions for HP Scheme Members and EDS Scheme Members) or 3.2.2 (Employer contributions for HP Scheme Members who joined the Hewlett-Packard Limited Pension Scheme before 1 January 2009) or the Appendix (HP Scheme Members with special terms), as appropriate; and
Note: The Appendix to these Rules describes which Employer contributions are to be treated as Salary Sacrifice AVCs for those special category Members.
(iii) unless the Employer determines otherwise, any additional contributions paid by the Employer in respect of the Member under Rule 15 (discretionary benefits).
The Excluded Excess Value will be used to provide such additional benefits, in the form of a lump sum payable under Rule 6.4 (payment of lump sum death benefits) or a pension payable to the Member’s Spouse, children or Dependants under Rule 6.3 (payment of survivors’ pensions), as the Trustees consider appropriate.
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It may be that a part of the Member’s Retirement Account has been transferred out of the Scheme in accordance with Rule 16.3 (partial transfers while still in Employment). If so, the part of the Member’s Retirement Account representing the Excluded Excess Value available to provide additional benefits will be adjusted by the Trustees on the basis that the partial transfer included a proportion of the Excluded Excess Value and is therefore not available to provide additional benefits.The Excluded Excess Value transferred at the date of the partial transfer will be calculated in accordance with the following formula:
X = Y / Z
where: X = the proportion of the Excluded Excess Value transferred at the date of the partial transfer;
Y = the value of the partial transfer from the Member’s Retirement Account as at that date; and
Z = the total value of the Member’s Retirement Account as at that date.
If, at the date of the Member’s death, the value of the Member’s Retirement Account (after deducting an amount equal to the Excluded Excess Value, as described above) is greater than the amount needed to provide the benefits referred to in (a) and (b) above, any excess will be used to increase those benefitsdescribed in (a) and (b) above in a manner determined by the Trustees.
The Trustees may insure any benefits payable under this Rule 6.1 with an insurance company agreed by Hewlett-Packard. The benefits payable on a Member’s death will be subject to payment having been made, to the satisfaction of the Trustees, by the insurance company with which the benefit is insured and will be subject to any conditions imposed by that insurance company.
An Employee will not qualify for benefits under this Rule 6.1 unless he or she has, if requested to do so, provided the Trustees with satisfactory evidence of good health, and any other information that they require.
Note: Any Excluded Excess Value which is not used to provide benefits on behalf of the Member in the ways described above will fall into the general assets of the Scheme (and will form part of the Surplus Fund as described in Rule 18.5(surplus)).
6.1.2 Lump sum benefit
If a Member dies in Employment before age 75, the Trustees will provide a lump sum equal to:
(a) 4 times the Member’s Annual Salary as at the date of death or such higher or lower multiple as the Member has selected through Salary Sacrifice; and
(b) for EDS Scheme Members only, an amount equal to the value of the Member’s Retirement Account at the date of death where no Spouse’s, Dependant’s or children’s pensions are payable under Rule 6.1.3 (Spouse’s pension) or 6.1.4 (children’s pensions).
The lump sum will be paid in accordance with Rule 6.4 (payment of lump sum death benefits).
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6.1.3 Spouse’s pension
If a Member dies in Employment before age 75, the Spouse’s pension payable will be equal to the following:
(a) in respect of HP Scheme Members who were active members of the Hewlett-Packard Limited Pension Scheme immediately before joining the Scheme on 1 January 2010, 25% of the Member’s Annual Salary at the date of death or such higher or lower percentage as the Member has selected through Salary Sacrifice;
(b) in respect of EDS Scheme Members who were active members of the Electronic Data Systems Investment Plan on 31 March 2006 and who remained an active member until he or she joined the Scheme on 1 January 2010, 30% of the Member’s Annual Salary at the date of death or such higher or lower percentage as the Member has selected through Salary Sacrifice.
Note: At the date of these Rules Salary Sacrifice does not permit EDS Scheme Members to choose a Spouse’s pension percentage other than 30%.
The Spouse’s pension will be payable to the Member’s Spouse. However, the Trustees may instead pay part or all of the Spouse’s pension to one or more of the Member’s Dependants (provided it is authorised under Part 4 of the Finance Act 2004). If the Trustees pay part of the Spouse’s pension to a Dependant, the amount of any pension payable to the Member’s Spouse will be reduced by the amount paid to the Dependant. The pension payable to the Member’s Spousecannot, however, be less than the pension which can be provided by the Member’s Protected Rights Account.
The pension payable to the Member’s Spouse will be provided under the annuity contract purchased unless Rule 13.2 (paying pensions from the Scheme) applies. It will increase at intervals of not more than 12 months by at least the relevant percentage specified in Section 51(4) of the Pensions Act 1995. For the purposes of that section, the reference period will be such period as the Trustees may determine from time to time.
If the Member dies in Employment before age 75 and does not leave a Spouse, the Trustees will pay the value of the Member’s Protected Rights Account in accordance with the Member’s directions or to the Member’s estate. The Trustees may pay part or all of the Spouse’s pension (after making allowance for the value of the Member’s Protected Rights Account) to one or more of the Member’s Dependants, provided that the total amount of pension payable shall not be greater than the amount of the Spouse’s pension and provided it is authorised under Part 4 of the Finance Act 2004.
In respect of a HP Scheme Member only, if the Spouse’s pension is paid to a person who is younger than the Member, the pension paid will, unless the Trustees, with the consent of Hewlett-Packard, decide otherwise, be reduced by an amount determined by the insurance company insuring this benefit at the date of the Member’s death (in accordance with the insurance policy covering this benefitat the date of the Member’s death).
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A pension paid under this Rule 6.1.3 will be payable in accordance with Rule 6.3(payment of survivors’ pensions).
6.1.4 Children’s pensions
If a Member dies in Employment before age 75, the children’s pension payable will be equal to the following:
(a) in respect of HP Scheme Members who were active members of the Hewlett-Packard Limited Pension Scheme immediately before joining the Scheme on 1 January 2010, one-third of the Spouse’s pension for each Pensionable Child, up to a maximum of three; and
(b) in respect of EDS Scheme Members who were active members of the Electronic Data Systems Investment Plan on 31 March 2006 and who remained an active member until he or she joined the Scheme on 1 January 2010, 10% of the Member’s Annual Salary for each Pensionable Child up to a maximum of three (but in the event that no pension is payable to a Spouse or Dependant, the children’s pension will be doubled).
The pension in each case will be payable in accordance with Rule 6.3 (payment of survivors’ pensions).
In the event that there are more than three Pensionable Children, the children’s pension will be divided equally between them.
Where a Member initially leaves more than three Pensionable Children and, in accordance with Rule 6.3 (payment of survivors’ pensions), a pension ceases to be payable to one of those children, then that child’s share of the total pension will be divided amongst the remaining Pensionable Children. Once the number of Pensionable Children reduces to three there will be no further redistribution of pension and each child’s pension will finish when it ceases to be payable in accordance with Rule 6.3 (payment of survivors’ pensions).
6.2 Benefits on death before Pension Payment Date but after leaving EmploymentIf a Member dies before his or her Pension Payment Date but after leaving Employment, the Trustees will use the Member’s Protected Rights Account to provide a pension for the Member’s Spouse in accordance with the Contracting-out Laws. If the Member dies and does not leave a Spouse, the Trustees will pay the value of the Member’s Protected Rights Account in accordance with the Member’s directions or to the Member’s estate.
The Trustees will use the balance of the Member’s Retirement Account to provide benefits in one or both of the following forms, as requested by the Member or, if the Member has made no request, as the Trustees consider appropriate:
6.2.1 a lump sum payable as described in Rule 6.4 (payment of lump sum death benefits);
6.2.2 a pension or pensions payable to one or more of the Member’s Spouse, children and Dependants as described in Rule 6.3 (payment of survivors’ pensions).
The benefits must all be authorised for the purposes of Part 4 of the Finance Act 2004.
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6.3 Payment of survivors’ pensionsA pension payable to a surviving Spouse will be payable for life.
A pension payable to a Pensionable Child will be payable until the child reaches age 18. However, it may continue to be paid to a child who has reached age 18:
6.3.1 for so long as the child is under age 23 and in full-time education or training approved by the Trustees; or
6.3.2 for the lifetime of the child, but only if the child was dependent on the Member because of disability when the Member died.
A pension payable to any other adult Dependant will be payable for life.
Note: For a person to receive a Dependant’s pension he or she must be a “dependant” as described in paragraph 15 of Schedule 28 of the Finance Act 2004.
6.4 Payment of lump sum death benefitsThe Trustees will pay any lump sum death benefit to one or more of the Beneficiaries. If the Trustees decide to pay the benefit to more than one of the Beneficiaries, they will pay it in such shares as they decide.
The “Beneficiaries” are: the Member’s Spouse, the Member’s or Spouse’s grandparents and their descendants and the spouses, civil partners, widows, widowers and surviving civil partners of those descendants; the Member’s Dependants; the Member’s cohabitee; any person with an interest in the Member’s estate (but not including the Crown, the Duchy of Lancaster or the Duke of Cornwall); and any person, charity or organisation nominated by the Member in writing to the Trustees.
The Trustees may use all or part of the amount payable for the benefit of one or more of the Beneficiaries, instead of paying it direct to the Beneficiaries concerned.
So long as only Beneficiaries can become entitled to the benefit, the Trustees may:
6.4.1 direct that all or part of the lump sum be held by themselves or other trustees on such trusts (including discretionary trusts) and with such powers and provisions (including powers of selection and variation) as the Trustees see fit; or
6.4.2 pay all or part of the lump sum to the trustees of any other existing trust.
No lump sum death benefit will be paid if there are no living Beneficiaries at the date of the Member’s death.
6.5 Commutation of pensionA person entitled to a pension (except a Pensionable Child) under this Rule 6 (benefits on Member’s death) may, with the consent of the Trustees and Hewlett-Packard and subject to the Contracting-out Laws and Part 4 of the Finance Act 2004, choose to give up any or all of that pension for a lump sum payable to him or her. Unless the Trustees, with the consent of Hewlett-Packard, decide otherwise, the pension will be commuted to a lump sum on a basis determined by the insurance company insuring this benefit at the date of the Member’s death (in accordance with the insurance policy covering this benefit at the date of the Member’s death).
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7 Early leavers
7.1 Preserved benefitsA Member who leaves Employment without becoming entitled to immediate benefits will remain entitled to benefits under the Scheme if he or she satisfies the preservation requirements set out in Rule 7.3 (preservation requirements).
The Trustees will provide retirement benefits for the Member as described in Rule 5 (Member’s retirement benefits) except that the Member’s Pension Payment Date will be the Member’s 65th birthday, unless the Member chooses:
7.1.1 a later date, but not later than the Member’s 75th birthday; or
7.1.2 an earlier date, but not earlier than the Member’s 50th birthday (55th birthday on or after 6 April 2010 unless the Member has a protected pension age in accordance with paragraphs 21 to 23A of Schedule 36 to the Finance Act 2004) unless the Member is suffering from Incapacity.
If the Member dies after leaving Employment but before his or her Pension Payment Date, death benefits will be provided as described in Rule 6.2 (benefits on death before Pension Payment Date but after leaving Employment).
Note: If the Member has taken 50% of his or her Retirement Account as described in Rule 5.1.3 (flexible retirement), he or she will be entitled to preserved benefits under this Rule 7 in respect of the remaining 50%. The remaining 50% can be brought into payment under this Rule 7 before the Member actually leaves Employment.
7.2 Protected rights pensionsA Member who leaves Employment without becoming entitled to immediate benefits or a preserved pension will have the right to choose a cash transfer sum in accordance with Chapter 5 of Part 4 of the Pension Schemes Act 1993 (early leavers: cash transfer sums and contribution refunds). If the Member does not exercise this right within the period allowed under those laws, the Member will:
7.2.1 remain entitled to his or her Protected Rights Account; and
7.2.2 receive a refund of the proceeds of his or her Non Salary Sacrifice AVCs made under Rule 3.3 (voluntary contributions).
The Member will not be entitled to any other benefits under the Scheme and the remainder of the Member’s Retirement Account will be retained by the Trustees as part of the general assets of the Scheme (and will form part of the Surplus Fund as described in Rule 18.5(surplus)).
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7.3 Preservation requirements A Member satisfies the preservation requirements if:
7.3.1 the Member leaves Employment with at least two years’ Qualifying Service;
7.3.2 a transfer payment in respect of the Member’s rights under a personal pension scheme has been made to the Scheme;
7.3.3 the Member is still entitled to benefits under the Scheme from a previous period of Employment;
7.3.4 immediately prior to joining the Scheme on 1 January 2010 the Member was a member of either the Hewlett-Packard Limited Pension Scheme or the Electronic Data Systems Investment Plan for retirement benefit purposes; or
7.3.5 Hewlett-Packard and the Trustees agree to treat the Member as satisfying the preservation requirements.
“Qualifying Service” means continuous Employment after joining the Scheme and employment that qualified the Member for retirement benefits under any occupational pension scheme from which a transfer payment has been made in respect of the Member either direct to the Scheme or to a “buy out” policy and subsequently to the Scheme. When calculating continuous Employment for this purpose, a break between leaving Employment and rejoining the Scheme will be ignored (but will not count as Employment) if it does not exceed one month or is due to a trade dispute.
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8 Right to transfer or buy-out
A Member who leaves Employment can require the Trustees to use his or her Retirement Account to buy one or more annuities, or to acquire rights under another occupational pension scheme or a personal pension scheme, in accordance with the Transfer Value Laws.
The Member can exercise this right by writing to the Trustees at any time (but not after his or her Pension Payment Date).
If the Member’s Retirement Account is used in accordance with this Rule 8, the Member will cease to be entitled to any further benefits under the Scheme.
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9 Members away from work
9.1 General principleIf a Member in continuing Employment is away from work for any reason, the Employer will continue to contribute to the Scheme in respect of the Member for only so long as the Member receives pay from the Employer.
Hewlett-Packard may agree special terms to apply to the Member’s and Employer’s contributions and death-in-service benefits payable under Rule 6.1 (benefits on death in Employment before age 75) while the Member is away from work. Any agreed special terms will be notified to the Member.
If the Employer stops paying contributions in respect of a Member away from work, the Member will be treated as having left Employment unless Hewlett-Packard agrees otherwise.
9.2 Family leaveIn this Rule 9.2, the terms in bold mean the same as in the Employment Rights Act 1996.
Statutory family leave
The Employer will always contribute to the Scheme during any period of “ordinary maternity leave”, “ordinary adoption leave” or “paternity leave” as if the Member had worked normally and received the normal pay for doing so.
Additional paid family leave
The Employer will also continue to contribute to the Scheme during any other period for which the Member receives pay from their Employer and which, for the purposes of Schedule 5 to the Social Security Act 1989 (equal treatment for men and women), is a period of maternity leave, adoption leave, paternity leave or absence from work for other family reasons.
In the case of paid maternity, adoption and paternity leave, the Employer’s contributions throughout these periods will be calculated as if the Member had worked normally and received the normal pay for doing so.
In the case of any other period of paid family leave, the Employer’s contributions will be based on the pay received, unless the Employer and the Trustees agree other terms that are no less favourable to the Member.
If the Employer stops contributing to the Scheme under this Rule 9.2, the Member will be treated as having left Employment unless Hewlett-Packard decides otherwise.
Note 1: The Employer contribution rate which applies for the purposes of this Rule 9.2 isthe rate which applied to the Member immediately before the Member went on leave.
Note 2: The percentage reduction in pay (if any) which applies to the Member immediately before the Member goes on leave continues to apply during the period of leave for which the Member remains in Employment, unless Hewlett-Packard decides otherwise.
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10 Ceasing to be eligible
A Member will be treated as having left Employment if:
(a) his or her terms of Employment are varied so that he or she is no longer eligible for membership of the Scheme; or
(b) (unless Hewlett-Packard decides otherwise) where the Member participates in Salary Sacrifice for pension contribution purposes, the Member fails to maintain such minimum salary reduction as is required under these Rules to obtain the minimum Employer contribution.
11 Opting out
A Member may opt out of the Scheme at any time by giving one month’s notice (or such shorter period as the Trustees may agree) to the Employer and the Trustees.
The Member will be treated as having left Employment on the last day of the month in which the notice expires, except that, as described in Rule 2.2 (Employees entitled to death in service benefits only), the Member will still be included in the Scheme for lump sum death-in-service benefits as described in Rule 6.1.2 (benefits on death in Employment before age 75 - lump sum benefit) as long as he or she actually remains in Employment.
A Member who opts out may only rejoin the Scheme for retirement benefits with the specific permission of Hewlett-Packard.
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12 Special provisions for certain Members
12.1 Members who were formerly members of the Hewlett-Packard Limited Retirement Benefits PlanThis Rule 12.1 sets out the special benefit terms which apply to certain HP Scheme Members who were formerly members of the Hewlett-Packard Limited Retirement Benefits Plan and who elected to become Members of the Hewlett-Packard Limited PensionScheme on 7 April 1997 and who joined the Scheme on 1 January 2010.
12.1.1 Death benefits
For the purposes of calculating the lump sum death-in-service benefit payable in respect of a HP Scheme Member under Rule 6.1.2 (benefits on death in Employment before age 75 - lump sum benefit), the Member’s Annual Salary will be equal to 11⁄24 times the Member’s actual Annual Salary.
The Spouse’s pension payable in respect of a HP Scheme Member under Rule 6.1.3(a) (benefits on death in Employment before age 75 - Spouse’s pension) will be equal to 36% of 11⁄24 times the Member’s Annual Salary.
The children’s pension payable in respect of a HP Scheme Member under Rule 6.1.4(a) (benefits on death in Employment before age 75 - children’s pension) will be equal to 9% of 11⁄24 times the Member’s Annual Salary.
12.1.2 Contributions
In addition to the contributions set out in Rule 3.2.2 (Employer contributions for HP Scheme Members who joined the Hewlett-Packard Limited Pension Scheme before 1 January 2009), the Employer will pay additional contributions at a rate previously notified by Hewlett-Packard to the Member. These contributions will be paid on a monthly basis until the Member leaves Employment or dies, whichever occurs first, and will be allocated to the Member’s Retirement Account.
12.2 Members who are receiving benefits under an Employer’s long-term disability benefits schemeThis Rule 12.2 sets out the special terms which apply to HP Scheme Members who are in receipt of benefits under an Employer’s long-term disability benefits scheme (“LTDB Members”).
For the purposes of Rule 3.2 (contributions by Employers), Rule 6.1 (benefits on death in Employment before age 75) and Rule 12.1.1 (death benefits for former members of the Hewlett Packard Limited Retirement Benefits Plan), if applicable, an LTDB Member’s Annual Salary is the Member’s notional salary as determined by Hewlett-Packard and notified to the Trustees. Unless the Trustees agree otherwise, the contributions payable under Rule 3.2 (contributions by Employers) will be based on the choices made by the Member under Salary Sacrifice as at 1 January immediately preceding the date on which payments under the long-term disability benefits scheme commence.
12.3 Members with special termsSpecial terms apply to some Members’ benefits, as described in the Schedules to the Appendix. Such special terms have been agreed between Hewlett-Packard and the Trustees, and Members have been notified of such special terms.
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13 General rules about pensions
13.1 Purchase of pensionsSubject to Rule 13.2 (paying pensions from the Scheme), a pension payable under the Scheme will be secured by an annuity contract purchased from an insurance company by the Trustees.
The Trustees must allow the Member a reasonable opportunity to choose the insurance company. If the Member dies before his or her Pension Payment Date, the Trustees must allow the person entitled to the pension a reasonable opportunity to choose the insurance company.
The annuity contract will be secured in the name of the Member or the person entitled to the pension. Any additional costs incurred will be deducted from the Members’ Retirement Account prior to the purchase of the annuity.
If a Member chooses to provide a pension for a Spouse, child or dependant on the Member’s death after retirement, the Trustees will normally secure the pension at the same time as they secure the Member’s pension. However, the Trustees may secure the survivor’s pension at a later date, if permitted under Part 4 of the Finance Act 2004.
13.2 Paying pensions from the SchemeThe Trustees may, if they consider the circumstances exceptional and with the consent of the Hewlett-Packard, pay a pension out of the assets of the Scheme instead of securing it by an annuity contract.
It may be that a pension is paid to a Member from the Scheme and he or she dies after his or her Pension Payment Date. If so, the Trustees will provide any of the following benefits:
13.2.1 if the Member’s pension is guaranteed and the Member dies before the end of the guarantee period, a pension or lump sum under the terms of the guarantee;
13.2.2 a pension or pensions payable to one or more of the Member’s Spouse, children and Dependants as they consider appropriate.
Any lump sum provided under the terms of a guarantee will be paid as described in Rule 6.4 (payment of lump sum death benefits). Any pension will be paid as described in Rule 6.3 (payment of survivors’ pensions).
The benefits must be authorised for the purposes of Part 4 of the Finance Act 2004.
13.3 Pension increasesPensions will increase in payment at a rate agreed between the Member and the annuity provider or, if the Member dies before starting to receive benefits under the Scheme, at a rate chosen by the Trustees.
If a pension under Rule 6.1.3 (benefits on death in Employment before age 75 - Spouse’s pension) or Rule 6.1.4 (benefits on death in Employment before age 75 - children’s pensions) is paid from the Scheme as described in Rule 13.2 (paying pensions from the Scheme), increases to pensions under Section 51 of the Pensions Act 1995 will take effect each year on a date decided by the Trustees. The intervals between increases will not exceed 12 months.
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14 General rules about benefits
14.1 Recovery of tax and other chargesThe Trustees will deduct from any payment under the Scheme any tax for which they may be liable in respect of it.
The Trustees may reduce any benefit in respect of which a lifetime allowance charge arises so as fully to reflect the amount of tax for which they may be liable in respect of it under Section 215 of the Finance Act 2004 (amount of charge). The Trustees will decide the amount of the reduction and their decision will be final.
14.2 Loss of right to benefitsBenefits under the Scheme are subject to restrictions imposed by Sections 91 to 93 of the Pensions Act 1995 (assignment and forfeiture, etc.). The restrictions are generally intended to ensure that benefits are paid only to the person entitled under these Rules rather than any other person. The restrictions prevent benefits from being assigned, commuted, surrendered, charged or forfeited, except in specified circumstances.
However, there are exceptions to the restrictions imposed by Sections 91 to 93. To the extent permitted by those exceptions:
14.2.1 an Employer may require the Trustees to reduce or forfeit a person’s benefits if the person owes money to the Employer and the debt arises from a criminal, negligent or fraudulent act or omission. If this happens the Trustees will pay the Employer an amount equal to the debt or, if less, the value of the person’s benefits;
14.2.2 the Trustees may reduce or forfeit a person’s benefits in order to obtain payment of any debt owed by the person to the Scheme;
14.2.3 the Trustees may stop any benefits that are payable in respect of a Member to a person who is convicted of the Member’s murder or manslaughter, or any other offence of which unlawful killing of the Member is an element (including aiding, abetting, counselling or procuring the Member’s death);
14.2.4 a benefit will cease to be payable if the person entitled to the benefit does not claim it within six years of the date on which it becomes due; and
14.2.5 a benefit (except for any amount that has already fallen due for payment) will cease to be payable if the person entitled to it under these Rules tries to assign or charge it or if any other event occurs by which all or part of the benefit would, if it belonged to that person absolutely, become payable to some other person. If this happens, the Trustees may (but need not) pay an equivalent or smaller discretionary benefitto, or for the benefit of, one or more of:
(a) the person who was entitled to the original benefit;
(b) that person’s legal spouse, legal civil partner or dependants at the relevant time.
If the Trustees decide to pay a discretionary benefit to more than one person, they may pay it in such shares as they decide.
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14.3 Beneficiary who is incapableIf the Trustees consider that any person cannot look after his or her affairs (because of illness, mental disorder, age or otherwise), they may use any amounts due to that person under the Scheme for his or her benefit, or may pay them to some other person to do so. The Trustees may also make, for the person concerned, any choice which that person has under the Scheme.
14.4 Tax status of the SchemeThe Scheme is a “registered pension scheme” for the purposes of Part 4 of the Finance Act 2004. If (without this Rule 14.4) the Trustees would be required to make a payment under the Scheme that would be “unauthorised” by virtue of Section 160 of that Act (payments by registered pension schemes), the payment will be treated as discretionary and will not be made unless the Trustees and the Employer agree otherwise (which they need not do).
14.5 Pension sharing on divorce14.5.1 Compliance with pension sharing orders
It may be that an order or provision under Section 28(1) of the Welfare Reform and Pensions Act 1999 or equivalent Northern Ireland laws (activation of pension sharing) requires all or part of a Member’s benefits to be transferred to the Member’s former spouse or civil partner. If this happens, the Trustees will discharge their liability to the former spouse or civil partner in accordance with the requirements of the Act. The Trustees may recover charges from the Member, former spouse or civil partner in respect of pension sharing costs, as allowed by the Act.
In discharging their liability to a former spouse or civil partner, the Trustees will treat as safeguarded rights only the safeguarded percentage of the person’s rights, as allowed by Part 3A of the Pension Schemes Act 1993 (safeguarded rights).
14.5.2 Benefits under the Scheme
If the Trustees provide benefits for the former spouse or civil partner under the Scheme, these benefits will comply with the laws on safeguarded rights in Part 3A of the Pension Schemes Act 1993. The benefits will be provided separately from any other benefits to which the former spouse or civil partner may be entitled under the Scheme. The Trustees will provide the former spouse or civil partner withwritten details of the benefits that will be provided.
14.5.3 Death of former spouse or civil partner before a transfer payment is made
It may be that the Trustees intend to discharge their liability to the former spouse or civil partner by making a transfer payment to another pension arrangement, but the former spouse or civil partner dies before the payment is made. If this happens, the Trustees may (but need not) use the intended transfer payment to provide benefits in respect of the former spouse or civil partner in any of the ways allowed by the Welfare Reform and Pensions Act 1999. Any part of the intended transfer payment that is not used in this way will be retained by the Trustees as part of the Scheme’sgeneral assets (and will form part of the Surplus Fund as described in Rule 18.5(surplus)).
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14.6 Contracting-outThere are two sections of the Scheme.
One section is “contracted-out” and the other is “contracted-in”. Unless Hewlett-Packard decides otherwise, Members will join the contracted-in section. Members may join the contracted-out section only if Hewlett-Packard decides that they may do so.
If any Member’s employment becomes contracted-out by reference to the Scheme, the Trustees will operate the Scheme in accordance with the Contracting-out Laws that apply to contracted-out money purchase schemes. These Rules will be treated as including Rules to the same effect as any rule that must be included for the Scheme to be contracted-out in relation to a Member’s Employment. This Rule 14.6 overrides all other provisions of the Scheme, except those that are in accordance with the Pension Schemes Act 1993.
14.7 Evidence of healthIf any benefits under the Scheme are insured, they will be subject to any restrictions imposed by the person with whom they are insured. This means that these benefits may not be paid if the Trustees cannot get insurance for particular Members.
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15 Discretionary benefits
If Hewlett-Packard so requests and the Employers pay any additional contributions that the Trustees consider appropriate, the Trustees will provide:
(a) increased or additional benefits for, or in respect of, any Member or Members;
(b) benefits for, or in respect of, any Member or Members which are different or which are on different terms (including as to time of payment) from those that would otherwise be provided under the Scheme; or
(c) benefits for any Employee or former Employee or any spouse or civil partner or dependant of a former Employee, or for any other person for whom an Employer wishes to provide benefits.
Any benefits provided under this Rule 15 must be consistent with the Contracting-out,Preservation and Transfer Value Laws and authorised for the purposes of Part 4 of the Finance Act 2004.
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16 Transfers to and from the Scheme
16.1 Transfers from other pension schemes and arrangementsIf Hewlett-Packard agrees, the Trustees may accept a transfer of assets or surrender valuein respect of any person from another pension scheme or arrangement.
In the case of a Member who has not started to receive benefits under the Scheme, the Trustees will add the assets or surrender value to the Member’s Retirement Account. In any other case, the Trustees will use the assets or surrender value to provide benefits (or additional benefits) for the person concerned, as agreed with Hewlett-Packard and notified to that person. The benefits must comply with the Contracting-out, Preservation and Transfer Value Laws, and must be consistent with the Scheme’s tax status as a registered pension scheme under Part 4 of the Finance Act 2004.
16.2 Transfers to other pension schemes and arrangementsInstead of providing benefits under the Scheme for any person, the Trustees may make a transfer payment to another pension scheme or arrangement or to an insurance company, so that benefits will be provided under the other scheme or arrangement, or by the insurance company, for the person concerned.
The transfer must comply with the Contracting-out and Preservation Laws. It must also be a “recognised transfer” under Section 169 of the Finance Act 2004 (recognised transfers).
In the case of a Member who has not started to receive benefits under the Scheme, the transfer payment will be equal to the realisable value of the Member’s Retirement Account. In any other case, the transfer payment will be equal to the value of the benefits that would otherwise have been provided under the Scheme for, and in respect of, the person concerned.
If a transfer is made in respect of a Member in accordance with this Rule 16.2, the Member will cease to be entitled to any further benefits under the Scheme.
16.3 Partial transfers while still in EmploymentIf Hewlett-Packard and the Trustees agree, a Member in Employment may request the Trustees to transfer assets in respect of part of the Member’s Retirement Account to another pension scheme or arrangement or to an insurance company as described in Rule 16.2 (transfers to other pension schemes and arrangements). Any request for a partial transfer will be subject to any conditions as to minimum or maximum amount, frequency of request or timing of transfer as the Trustees decide. Following a partial transfer, the Member will remain a Member of the Scheme and continue to accrue further benefits but the value of the Member’s Retirement Account will be reduced by the amount transferred.
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17 Trustees
17.1 Appointment and removalHewlett-Packard may appoint new or additional trustees or a body corporate as sole trustee. Hewlett-Packard may also remove Trustees. A trustee may resign from office by giving notice to Hewlett-Packard and the other trustees.
These powers will be exercised by deed. They may be exercised without giving any reason and without any limit on the number of trustees. However, they may not be exercised in any way that conflicts with any arrangements made under Sections 241 to 243 of the Pensions Act 2004 (requirement for member-nominated trustees and directors).
17.2 Exercise of powersWhere there is more than one Trustee, the Trustees may act by majority vote.
All decisions made by the Trustees at a meeting shall be minuted and signed.
The Trustees may delegate any of their powers, duties or discretions to any person and on any terms (including terms that allow the delegate to sub-delegate).
Note: The current Trustee is a corporate Trustee. It will act in accordance with these Rules and its Articles of Association.
17.3 Trustee chargesA trustee (and any officers and employees of a corporate trustee) may be remunerated for services provided as a trustee of the Scheme on a basis agreed with Hewlett-Packard, as also may a company or firm in which a trustee (or employee of a corporate trustee) is interested. Unless agreed otherwise by Hewlett-Packard, such remuneration shall be treated as an expense of the Scheme and paid as described in Rule 18.3 (Scheme expenses and liabilities).
17.4 Limit of liabilityA Trustee (and the officers and employees of a corporate trustee) will not be liable for any negligence, default, breach of duty or breach of trust except:
17.4.1 knowing and deliberate wrongdoing; or
17.4.2 any liability in relation to the corporate trustee itself that, under company law,cannot be excluded.
This Rule 17.4 is subject to Section 33 of the Pensions Act 1995 (investment powers: duty of care). Section 33 limits the extent to which liability for breach of any obligation to take care or exercise skill in the performance of any investment functions can be excluded or restricted.
The Trustees (and any officers and employees of a corporate trustee) will not be liable for any acts or defaults of a fund manager to whom they have delegated any discretion, except where the Pensions Act 1995 does not permit such liability to be excluded.
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17.5 Indemnity and protection from lossHewlett-Packard will indemnify each trustee and former trustee (and the officers and employees of a corporate trustee) against any expenses and liabilities which are incurred through acting as a trustee of the Scheme but which cannot, for any reason, be met out of the Scheme’s assets. Hewlett-Packard will also indemnify the officers and employees of a corporate trustee against any expenses and liabilities that they may incur in relation to the corporate trustee itself and in connection with its activities as a trustee of the Scheme. However, these indemnities do not apply:
17.5.1 to expenses and liabilities which are incurred through knowing and deliberatewrongdoing;
17.5.2 to expenses and liabilities which are covered by insurance under Rule 17.6 (trustee insurance);
17.5.3 in respect of liabilities of the kind mentioned in Section 235(3) of the Companies Act 2006 which cannot be covered by a qualifying pension scheme indemnity.
17.6 Trustee insuranceIf Hewlett-Packard agrees, the Trustees may insure the Scheme against any loss caused by them (and the officers and employees of a corporate trustee) or any of their delegates. The Trustees may also insure themselves (and the officers and employees of a corporate trustee) against liability for any negligence, default, breach of duty or breach of trust, not including knowing and deliberate wrongdoing.
If Hewlett-Packard agrees the premiums may be paid from the assets of the Schemeunless the insurance covers fines or penalties of a kind mentioned in Section 256 of the Pensions Act 2004 (no indemnification for fines or civil penalties).
To the extent to which the Trustees obtain insurance, they will waive the protection of Rule 17.4 (limit of liability).
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18 Assets of the Scheme
18.1 Assets held on trustThe Trustees will hold all the contributions and other assets which they receive and the property representing them and all the income on trust for the purposes of the Scheme.
18.2 Use of assetsFor the purposes of the Scheme, the Trustees may, in any part of the world, alone or together with others:
18.2.1 acquire and dispose of any property (tangible or intangible, movable or immovable), whether or not it produces income;
18.2.2 enter into any contract or incur any obligation;
18.2.3 lend or borrow money or other property for any purpose (including acquiring assets);
18.2.4 grant any mortgage or charge over or give any right of recourse against any or all of the assets of the Scheme;
18.2.5 form and finance any company;
18.2.6 carry on and finance any business;
18.2.7 insure assets of the Scheme for any amount against any risk;
18.2.8 keep assets in nominee names; and
18.2.9 exercise their powers under Section 34(1) of the Pensions Act 1995 (power of investment and delegation) to make an investment of any kind as if they were absolutely entitled to the assets of the Scheme.
The Trustees will exercise these powers in accordance with Sections 36 and 40 of the Pensions Act 1995 (choosing investments and restrictions on employer-related investments).
If the value of a Member’s Retirement Account is linked to one or more investment options, the Trustees will invest an amount equal to the Member’s Retirement Account in assets that correspond to the chosen options for as long as the Trustees choose to maintain thoseinvestment options.
18.3 Scheme expenses and liabilities The Trustees will pay the expenses of the Scheme out of the assets of the Scheme (unless Hewlett-Packard decides otherwise in which case the Employers will pay the expenses of the Scheme or reimburse the Scheme for expenses already paid out of the Scheme assets, in such proportions as Hewlett-Packard decides).
This includes all expenses and liabilities incurred by a trustee or former trustee through acting as a trustee of the Scheme.
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If any expenses are not paid (or credited in accordance with Rule 18.5 (surplus)) by the Employers, the Trustees will allocate to each Member’s Retirement Account a fair share (determined by the Trustees) of the expenses and liabilities paid from the Scheme’s assets. However, no amount may be paid from the Scheme’s assets to reimburse a trusteeor former trustee for:
18.3.1 expenses or liabilities incurred through knowing and deliberate wrongdoing or which are covered by insurance under Rule 17.6 (trustee insurance); or
18.3.2 fines or penalties of the kind mentioned in Section 256 of the Pensions Act 2004 (no indemnification for fines or incurred penalties).
Note: Rule 18.5 (surplus) allows for expenses to be paid from the general assets of the Scheme.
18.4 Accounts The Trustees will prepare annual accounts of the Scheme and have them audited.
18.5 SurplusAny payments or assets which are not used to provide benefits for or in respect of a Member will fall into the general assets of the Scheme (“Surplus Fund”). Such payments or assets include:
18.5.1 the value of the Member’s Retirement Account which cannot be used to provide benefits for the Member because the Member has died and there is no other person to whom the Trustee can make authorised payments (within the meaning of Part 4 of the Finance Act 2004) in respect of the Member;
18.5.2 the balance (if any) of a Member’s Retirement Account that is remaining after benefits have been allocated in accordance with Rule 7.2 (protected rights pensions);
18.5.3 an amount equal to an “intended transfer payment” which is not used to provide benefits to a former spouse or civil partner in accordance with Rule 14.5.3 (death of former spouse or legal civil partner before a transfer payment is made);
18.5.4 an amount equal to such part of the Member’s Retirement Account that falls into the general assets of the Scheme as described in Rule 6.1.1 (benefits payable on death in Employment before age 75 - benefits payable); and
18.5.5 any other payments or assets not used to provide benefits for or in respect of a Member.
Hewlett-Packard may, at any time, require the Trustee to use these general assets in the Surplus Fund to pay the expenses of the Scheme or to meet any liability of the Employers to contribute to the Scheme.
Hewlett-Packard may also require the Trustees to pay all or part of the surplus (less tax) to the Employers in such shares as Hewlett-Packard directs. However, the Trustees may only do this if and to the extent they are allowed to do so by Section 37 of the Pensions Act 1995 (payment of surplus to employer).
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19 Participating Employers
19.1 Inclusion in the SchemeHewlett-Packard may allow any employer to participate in the Scheme.
An employer wishing to participate in the Scheme must enter into a deed with Hewlett-Packard and the Trustees, agreeing to comply with the Rules.
19.2 Ceasing to participateAn Employer may cease to participate in the Scheme at any time by giving four weeks’written notice to the Trustees (or such shorter period as the Trustees agree), and will cease to participate if required to do so by Hewlett-Packard.
When an Employer ceases to participate in the Scheme, any Members who are then in Employment with that Employer will become entitled to benefits as if they had then left Employment.
20 New Principal Employer
The Trustees may allow another employer or holding company to take over the role of Hewlett-Packard in relation to the Scheme. This requires the agreement of Hewlett-Packard, however, unless Hewlett-Packard has been dissolved.
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21 Termination of the Scheme
21.1 Time of terminationHewlett-Packard may terminate the Scheme at any time by giving four weeks’ written notice to the Trustees (or such shorter period as the Trustees agree).
The Trustees will terminate the Scheme if Hewlett-Packard goes into liquidation, unless another employer or a holding company agrees to take over the role of Hewlett-Packard in relation to the Scheme.
21.2 Effect of terminationAny Members who are in Employment when the Scheme terminates will be treated as having left Employment.
After the Scheme terminates, the Trustees will continue to provide benefits in accordancewith the Rules. However, no further contributions or death-in-service benefits will become payable, unless the Scheme is reopened.
21.3 Reopening the SchemeAt any time before winding up starts, the Trustees and Hewlett-Packard may agree to reopen the Scheme, so that Employees can again start qualifying for benefits.
If the Scheme is reopened, all the Rules will again apply but, unless the Trustees and Hewlett-Packard agree otherwise:
21.3.1 no contributions will be payable in respect of the period between the termination of the Scheme and its reopening; and
21.3.2 no death-in-service benefits will be payable under Rule 6.1 (benefits on death in Employment before age 75) in respect of any Member or other Employee who died during that period.
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22 Winding up the Scheme
22.1 Time of winding upThe Trustees may decide to wind up the Scheme at any time after the Scheme is terminated. However, the Trustees will wind up the Scheme at any time if so directed by Hewlett-Packard.
The Trustees will continue to pay benefits in accordance with the Rules, and the power of alteration in Rule 23 (changing the rules) will continue to apply, until the Scheme has been wound up and all the benefits secured. If Hewlett-Packard is dissolved before the winding up is completed, the Trustees may exercise any powers given to Hewlett-Packard, unless another employer or a holding company has taken over the role of Hewlett-Packard in relation to the Scheme.
22.2 Use of assetsWhen the winding up starts the Trustees will pay all sums that became due for payment before the winding up started, including lump sums in respect of Members who died before the winding up started. The Trustees will then set aside sufficient assets to pay the expenses of the winding up. The Trustees will then use the rest of the Scheme assets as described in Rules 22.3 to 22.6 below.
22.3 Securing benefits with insurance policies and annuity contractsThe Trustees will buy an insurance policy or annuity contract in the name of each person entitled to benefits under the Scheme, except those for whom they pay a lump sum underRule 22.4 (winding up lump sums) or make a transfer under Rule 22.5 (transfers to other pension schemes and arrangements). If the Trustees have bought suitable contracts before the winding up starts, they may transfer them into the names of people entitled to benefits.
The policies and contracts must comply with the Contracting-out Laws, and Preservation Laws and be consistent with the Scheme’s tax status as a registered pension scheme under Part 4 of the Finance Act 2004.
The annuity contracts bought for pensioners must provide benefits that are as nearly as practicable the same as the benefits that would otherwise have been provided for, and in respect of, the pensioners under the Scheme.
22.4 Winding up lump sumsWhen winding up the Scheme, the Trustees may pay an immediate lump sum instead of providing other benefits, if payment of a “winding up lump sum” is permitted under Part 4 of the Finance Act 2004. The Trustees will pay the lump sum to the person in whose name they would otherwise have bought an insurance policy or annuity contract.
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22.5 Transfers to other pension schemes and arrangementsWhen winding up the Scheme, the Trustees may make transfer payments in accordance with Rule 16.2 (transfers to other pension schemes and arrangements) in respect of all or any of the people entitled to benefits under the Scheme, instead of buying insurance policies or annuity contracts.
A transfer of benefits in respect of contracted-out employment must be approved by HM Revenue & Customs in accordance with Section 50 of the Pension Schemes Act 1993 (powers of Inland Revenue to approve arrangements for schemes ceasing to be certified).
22.6 Surplus assetsIf any assets of the Scheme remain after all benefits have been provided in full, the Trustees will pay them to Hewlett-Packard or, if Hewlett-Packard has been dissolved, to the other Employers in such shares as the Trustees decide.
The requirements of Section 76 of the Pensions Act 1995 (excess assets on winding up) must be satisfied before any payment is made to the Employers.
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23 Changing the Rules
Hewlett-Packard and the Trustees may together, by deed, change these Rules at any time (and may do so retrospectively).
Note: There are statutory requirements that apply in relation to certain changes to the Scheme. Section 259 of the Pensions Act 2004 (consultation by employers: occupational pension schemes) requires employers to consult before a “listed change” is made that would affect the Scheme. Section 67 of the Pensions Act 1995 (the subsisting rights provisions) applies if a proposed change under this Rule 23 would be a “regulated modification” under Section 67.
24 Governing law
English law governs the Scheme and its administration.
SIGNED as a DEED by Hewlett-Packard Limited by the signatures of:
Director
Director/Secretary
SIGNED as a DEED by Hewlett-Packard Investment Scheme Pension CompanyLimited by the signatures of:
Director
Director/Secretary
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Appendix: HP Scheme Members with special terms
This Appendix sets out the special terms which apply to certain HP Scheme Members (as referred to in Rule 12.3 (Members with special terms)). The Schedules set out below describe how theRules are modified in respect of such Members.
Schedule 1BT Members
This Schedule 1 applies to a HP Scheme Member:
(a) who joined the Hewlett-Packard Limited Pension Scheme for retirement benefits on 1 August 2004 (the “Transfer Date”); and
(b) who was, immediately before that date, an active member of the BT Pension Scheme or the BT Retirement Plan; and
(c) who remained an active member of the Hewlett-Packard Limited Pension Scheme until he or she joined the Scheme on 1 January 2010.
Such HP Scheme Members will be known as “BT Members”. These special terms only apply to those BT Members who have been notified of such special terms by Hewlett-Packard.
Benefits for a BT Member will be calculated and paid in accordance with these Rules (as they apply to HP Scheme Members) subject to the following modifications:
1. Meaning of words used (Rule 1)
1.1 Annual Salary If a BT Member received a London weighting allowance from his employer immediately prior to 1 July 2004, the BT Member’s Annual Salary will be the amount determined by Hewlett-Packard and notified to the Trustees and the BT Member concerned as being the yearly rate of the BT Member’s Annual Salary, excluding any directors’ fees, shift allowances, overtime and fluctuating emoluments but including the London weighting allowance or, in the case of a Member who participates in a sales incentive plan, the Member’s annual earnings objective plus the London weighting allowance.
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2 Contributions by Employers and Members (Rule 3)
2.1 Member contributions
(Rule 3.1)
A BT Member is not required to contribute to the Scheme.
Note: BT Members have agreed a reduction in their Annual Salary for pension contribution purposes through Salary Sacrifice. The reduction is chosen by the BT Member but must not be less than 4% of Annual Salary or more than the maximum permitted by Salary Sacrifice from time to time. This reduction will determine the level of Employer contributions, as described in paragraph 2.2 (Employer contributions) below.
A BT Member’s Employer will contribute to the Scheme in respect of each BT Member in its Employment who is aged 75 or less in accordance with the following table, or at such other rate as the BT Member’s Employer decides from time to time and notifies to the BT Member and the Trustees in writing.
Amount of pay reduction chosen by BT Member (expressed as a percentage of Annual Salary)
Resultant contribution payable by Employer (expressed as a percentage of Annual Salary)
4% 16%
2.2 Employer contributions
(Rule 3.2)
It may be that a BT Member has chosen an amount greater than 4% of Annual Salary for pension contribution purposes under Salary Sacrifice. If so, the contribution payable by the Employer will increase from 16% by a further 1.1% for each additional 1% reduction chosen by the Member (up to the maximum permitted under Salary Sacrifice from time to time). These additional Employer contributions above 16% (less 0.1% for each additional 1% reduction chosen by the Member above 4%), will be known as “Salary Sacrifice AVCs for the purposes of Rule 6.1.1 (benefits on death in Employment before age 75 – benefits payable).
Members who at any time choose a reduction of less than 4% of Annual Salary will be treated as having left Employment unless otherwise agreed by Hewlett-Packard. The contribution payable for the month in which the Member leaves Employment or dies will be a proportionate amount calculated on a daily basis, unless the Trustees decide otherwise.
These contributions payable by a BT Member’s Employer will continue only during a single continuous period of Employment with the BT Member’s Employer.
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3 Benefits on death in Employment before age 75 (Rule 6.1)
3.1 Lump sum death in Employmentbenefit
(Rule 6.1.2)
The lump sum benefit provided under Rule 6.1.2 (benefits on death in Employment before age 75 - lump sum benefit) is equal to 4 times the Member’s Annual Salary at the date of death.
Note: A higher or lower multiple cannot be chosen by a BT Member unless otherwise agreed by Hewlett-Packard.
3.2 Spouse’s pension
(Rule 6.1.3)
The pension provided under Rule 6.1.3 (benefits on death in Employment before age 75 - Spouse’s pension) is equal to 25% of the BT Member’s Annual Salary at the date of death.
Note: A higher or lower percentage cannot be chosen by a BT Member unless otherwise agreed by Hewlett-Packard.
3.3 Excluded Excess Value
(Rule 6.1.1)
Notwithstanding Rule 6.1.1 (benefits on death in Employment before age 75 - benefits payable), that part of the BT Member’s Retirement Account which represents the value of the Employer contributions(excluding Salary Sacrifice AVCs) as referred to in paragraph 2.2(Employer contributions) above will not form part of the BT Member’s Excluded Excess Value for the purposes of Rule 6.1 (benefits on death in Employment before age 75).
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Schedule 2Credit Suisse Members
This Schedule 2 applies to a HP Scheme Member:
(a) who joined the Hewlett-Packard Limited Pension Scheme for retirement benefits on 1 June 2004 (the “Transfer Date”); and
(b) who was, immediately before that date, an active member of the Credit Suisse Group (UK) Pension Fund; and
(c) who remained an active member of the Hewlett-Packard Limited Pension Scheme until he or she joined the Scheme on 1 January 2010.
Such HP Scheme Members will be known as “Credit Suisse Members”. These special terms only apply to those Credit Suisse Members who have been notified of such special terms by Hewlett-Packard.
Benefits for a Credit Suisse Member will be calculated and paid in accordance with these Rules (as they apply to HP Scheme Members) subject to the following modifications:
1 Contributions by Employers and Members (Rule 3)
1.1 Membercontributions
(Rule 3.1)
A Credit Suisse Member is not required to contribute to the Scheme.
Note: Credit Suisse Members do not participate in Salary Sacrificefor pension contribution purposes.
1.2 Employer contributions
(Rule 3.2)
The Credit Suisse Member’s Employer will contribute to the Scheme in respect of each Credit Suisse Member in its Employment who is aged 75 or less at the rate of 8% of Annual Salary, or at such other rate as the Employer decides from time to time and notifies to the Credit Suisse Member and the Trustees in writing.
These contributions payable by a Credit Suisse Member’s Employer will continue only during a single continuous period of Employment with the Credit Suisse Member’s Employer.
2. Benefits on death in Employment before age 75 (Rule 6.1)
2.1 Excluded ExcessValue
(Rule 6.1.1)
Notwithstanding Rule 6.1.1 (benefits on death in Employment before age 75 - benefits payable), that part of the Credit Suisse Member’s Retirement Account which represents the value of the Employer contributions referred to in paragraph 1.2 (Employer contributions)above will not form part of the Credit Suisse Member’s Excluded Excess Value for the purposes of Rule 6.1 (benefits on death in Employment before age 75).
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Schedule 3Tarmac Members
This Schedule 3 applies to a HP Scheme Member :
(a) who joined the Hewlett-Packard Limited Pension Scheme for retirement benefits on 1 March 2007 (the “Transfer Date”); and
(b) who was, immediately before that date, an active member of the Tarmac UK Pension Scheme- Defined Benefits Section; and
(c) who remained an active member of the Hewlett-Packard Limited Pension Scheme until he or she joined the Scheme on 1 January 2010.
Such HP Scheme Members will be known as “Tarmac Members”. These special terms only apply to those Tarmac Members who have been notified of such special terms by Hewlett-Packard.
Benefits for a Tarmac Member will be calculated and paid in accordance with these Rules (as they apply to HP Scheme Members) subject to the following modifications:
1. Contributions by Employers (Rule 3.2)
1.1 Additional Employer contributions
(Rule 3.2)
In addition to the Employer contributions under Rule 3.2.2 (Employer contributions for HP Scheme Members who joined the Hewlett-Packard Limited Pension Scheme before 1 January 2009) the Tarmac Member’s Employer will contribute to the Scheme an additional Employer contribution of 3.9% of Annual Salary in respect of each Tarmac Member. These additional contributions will cease on whichever is the earlier of:
(a) 1 March 2012;
(b) the termination of Employment of the Tarmac Member; or
(c) the Tarmac Member reaching age 75.
2. Benefits on death in Employment before age 75 (Rule 6.1)
2.1 Excluded Excess Value
(Rule 6.1.1)
Notwithstanding Rule 6.1.1 (benefits on death in Employment before age 75 - benefits payable), that part of the Tarmac Member’s Retirement Account which represents the value of the additional Employer contributions referred to in paragraph 1.1 (additional Employer contributions) above will not form part of the TarmacMember’s Excluded Excess Value for the purposes of Rule 6.1(benefits on death in Employment before age 75).
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Schedule 4Indigo UK Members
This Schedule 4 applies to a HP Scheme Member:
(a) who joined the Hewlett-Packard Limited Pension Scheme on 1 April 2003 (the “Transfer Date”); and
(b) who was, immediately before that date, either an active member of the Indigo Group Personal Pension Plan or was in receipt of an employer’s funding contribution to a personal pension plan nominated by the member; and
(c) who remained an active member of the Hewlett-Packard Limited Pension Scheme until he or she joined the Scheme on 1 January 2010.
Such HP Scheme Members will be known as “Indigo Members”. These special terms only apply to those Indigo Members who have been notified of such special terms by Hewlett-Packard.
Benefits for an Indigo Member will be calculated and paid in accordance with these Rules (as they apply to HP Scheme Members) subject to such modifications as have been notified to Indigo Members and the Trustees by Hewlett-Packard.
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Schedule 5Mercury Members
This Schedule 5 applies to a HP Scheme Member:
(a) who joined the Hewlett-Packard Limited Pension Scheme for retirement benefits on 1 March 2007 (the “Transfer Date”); and
(b) who was, immediately before that date, either:
(i) an active member of the Mercury Group Personal Pension Plan operated by Standard Life or was in receipt of an employer’s funding contribution to a personal pension plan nominated by the member (“Mercury Members”); or
(ii) entitled to become an active member of the Mercury Group Personal Pension Plan(“Mercury Group Life only Members”); and
(c) who remained an active member of the Hewlett-Packard Limited Pension Scheme until he or she joined the Scheme on 1 January 2010.
Such HP Scheme Members will be known as “Mercury Members” or “Mercury Group Life only Members”, as appropriate. These special terms only apply to those Members who have been notified of such special terms by Hewlett-Packard.
Note: Those Mercury Group Life only Members, as described in paragraph (ii) above, who joined the Hewlett-Packard Limited Pension Scheme on the Transfer Date are treated as a Mercury Members for the purposes of the Scheme and this Schedule 5. Those Mercury Group Life only Members who did not join the Hewlett-Packard Limited Pension Scheme on the Transfer Date butwho remain in Employment are treated as life assurance only members under Rule 2.2(Employees entitled to death-in-service benefits only).
Benefits for the above-mentioned Members will be calculated and paid in accordance with theseRules (as they apply to HP Scheme Members) subject to the following modifications:
1 Contributions by Employers and Members (Rule 3)
1.1 Membercontributions
(Rule 3.1)
A Mercury Member is not required to contribute to the Scheme.
Note: On joining the Scheme, Mercury Members were invited to participate in Salary Sacrifice for Member pension contributions. Members who agreed to this agreed a reduction in their Annual Salary for pension contribution purposes through Salary Sacrifice. The reduction is chosen by the Mercury Member but must not be less than 1% of Annual Salary or more than the maximum permitted by Salary Sacrifice from time to time. This reduction will determine the level of Employer contributions, as described in paragraph 1.2 (Employer contributions) below. Members who did not agree (and who have not agreed since) do not have a reduction in pay but will receive a reduced Employer contribution, as described in paragraph 1.2 (Employer contributions) below.
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A Mercury Member’s Employer will contribute to the Scheme in respect of each Mercury Member who is aged 75 or less in accordance with the following table, or at such other rate as the Mercury Member’s Employer decides from time to time and notifies to the Mercury Member and the Trustees in writing:
Amount of pay reduction chosen(expressed as a percentage ofAnnual Salary)
Resultant contribution payable by Employer (expressed as a percentage of Annual Salary)
1% 8.6%
2% 9.7%
3% 10.8%
4% 12.4%
1.2 Employer contributions
(Rule 3.2)
It may be that a Mercury Member has chosen an amount greater than 4% of Annual Salary for pension contribution purposes under Salary Sacrifice. If so, the contribution payable by the Employer will increase from 12.4% by 1.1% for each additional 1% reduction chosen by the Mercury Member (up to the maximum permitted under Salary Sacrifice from time to time). These additional Employer contributions above 12.4% (less 0.1% for each additional 1% reduction chosen by the Member above 4%), will be known as “Salary Sacrifice AVCs” for the purposes of Rule 6.1.1 (benefits on death in Employment before age 75 – benefits payable).
Mercury Members for whom there is no reduction in pay for pension contribution purposes (as described in paragraph 1.1 (Member contributions)) above will receive a 7.5% Employer contribution (expressed as a percentage of Annual Salary).
These contributions payable by a Mercury Member’s Employer will continue only during a single continuous period of Employment with the Mercury Member’s Employer.
1.3 AdditionalEmployer contributions
(Rule 3.2)
In addition to the Employer contributions described in paragraph 1.2 (Employer contributions) above, those Mercury Members designated by Hewlett-Packard as “non-sales”, who were contractually entitled to an annual bonus immediately prior to the Transfer Date, are entitled to an additional monthly Employer contribution equal to one twelfth of 7.5% of the last notified annual bonus amount.
This additional Employer contribution will continue until the Employer decides otherwise or on the Mercury Member leaving Employment orreaching age 75, whichever is earlier.
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2 Benefits on death in Employment before age 75 (Rule 6.1)
2.1 Excluded Excess Value
(Rule 6.1.1)
Notwithstanding Rule 6.1.1 (benefits on death in Employment before age 75 - benefits payable), that part of the Mercury Member’s Retirement Account which represents the value of the Employer contributions (excluding Salary Sacrifice AVCs) as referred to in paragraphs 1.2 (Employer contributions) above and 1.3 (additional Employer contributions) above will not form part of the Mercury Member’s Excluded Excess Value for the purposes of Rule 6.1 (benefits on death in Employment before age 75).
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Schedule 6Peregrine Members
This Schedule 6 applies to a HP Scheme Member:
(a) who joined the Hewlett-Packard Limited Pension Scheme for retirement benefits on 1 March 2006 (the “Transfer Date”); and
(b) who was, immediately before that date, an active member of the Peregrine Systems Limited Freedom Benefit Plan (a Group Personal Pension Plan operated by Standard Life)and was a continuous active member of that plan since before 1 June 2003; and
(c) who remained an active member of the Hewlett-Packard Limited Pension Scheme until he or she joined the Scheme on 1 January 2010.
Such HP Scheme Members will be known as “Peregrine Members”. These special terms only apply to those Peregrine Members who have been notified of such special terms by Hewlett-Packard.
Benefits for a Peregrine Member will be calculated and paid in accordance with these Rules (as they apply to HP Scheme Members) subject to the following modifications:
1. Contributions by Employers and Members (Rule 3)
1.1 Member contributions
(Rule 3.1)
Peregrine Members are not required to contribute to the Scheme.
Note: Peregrine Members who joined the Peregrine Systems Limited Freedom Benefit Plan prior to 1 June 2003 do not participate in Salary Sacrifice for pension contribution purposes.
However, Peregrine Members who joined the Peregrine Systems Limited Freedom Benefit Plan on or after 1 June 2003 do participate in Salary Sacrifice for pension contribution purposes. Such Peregrine Members have agreed a reduction in their Annual Salaryfor pension contribution purposes through Salary Sacrifice. The reduction is chosen by the Peregrine Member but must not be less than 1% of Annual Salary or more than the maximum permitted bySalary Sacrifice from time to time. This reduction will determine the level of Employer contributions, as described in paragraph 1.2 below(Employer contributions) above.
1.2 Employer contributions
(Rule 3.2)
For those Peregrine Members who joined the Peregrine Systems Limited Freedom Benefit Plan prior to 1 June 2003, the Peregrine Member’s Employer will contribute to the Scheme in respect of eachsuch Peregrine Member who is aged 75 or less at the rate of 10% of Annual Salary or at such other rate as the Peregrine Member’s Employer decides from time to time and notifies to the Peregrine Member and the Trustees in writing.
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For those Peregrine Members who joined the Peregrine Systems Limited Freedom Benefit Plan on or after 1 June 2003, the Peregrine Member’s Employer will contribute to the Scheme in respect of each such Peregrine Member who is aged 75 or less in accordance with the following table, or at such other rate as the Peregrine Member’s Employer decides from time to time and notifies to the PeregrineMember and the Trustees in writing.
Amount of pay reduction chosen by Peregrine Member (expressed as a percentage of Annual Salary)
Resultant contribution payableby Employer (expressed as a percentage of Annual Salary)
1% 6.1%
2% 8.2%
3% 10.3%
4% 12.4%
Employer contributions (Rule 3.2) cont.
It may be that a Peregrine Member has chosen an amount greater than 4% of Annual Salary for pension contribution purposes under Salary Sacrifice. If so, the contribution payable by the Employer will increase from 12.4% by a further 1.1% for each additional 1% reduction chosen by the Member (up to the maximum permitted under Salary Sacrifice from time to time). These additional Employer contributions above 12.4% (less 0.1% for each additional 1% reduction chosen by the Member above 4%), will be known as “Salary Sacrifice AVCs” for the purposes of Rule 6.1.1 (benefits on death in Employment before age 75 – benefits payable).
Members who at any time choose a reduction of less than 1% of Annual Salary will be treated as having left Employment unless otherwise agreed by Hewlett-Packard. The contribution payable for the month in which the Member leaves Employment or dies will be a proportionate amount calculated on a daily basis, unless the Trustees decide otherwise.
These contributions payable by a Peregrine Member’s Employer will continue only during a single continuous period of Employment with the Peregrine Member’s Employer.
2. Benefits on death in Employment before age 75 (Rule 6.1)
2.1 Excluded Excess Value
(Rule 6.1.1)
Notwithstanding Rule 6.1.1 (benefits on death in Employment before age 75 - benefits payable), that part of the Peregrine Member’s Retirement Account which represents the value of the Employer contributions (excluding Salary Sacrifice AVCs) as referred to in paragraph 1.2 (Employer contributions) above will not form part of the Peregrine Member’s Excluded Excess Value for the purposes of Rule 6.1 (benefits on death in Employment before age 75).
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Schedule 7Valliant Members
This Schedule 7 applies to a HP Scheme Member:
(a) who joined the Hewlett-Packard Limited Pension Scheme for retirement benefits on 1 May 2006 (the “Transfer Date”); and
(b) who was, immediately before that date, an active member of the Valliant Group’s defined benefit arrangement; and
(c) who remained an active member of the Hewlett-Packard Limited Pension Scheme until he or she joined the Scheme on 1 January 2010.
Such HP Scheme Members will be known as “Valliant Members”. These special terms only apply to those Valliant Members who have been notified of such special terms by Hewlett-Packard.
Benefits for a Valliant Member will be calculated and paid in accordance with these Rules (as they apply to HP Scheme Members) subject to the following modifications:
1. Contributions by Employers and Members (Rules 3)
1.1 Member contributions
(Rule 3.1)
A Valliant Member is not required to contribute to the Scheme.
Note: Valliant Members have agreed a reduction in their Annual Salary for pension contribution purposes through Salary Sacrifice. The reduction is chosen by the Valliant Member but must not be less than 1% of Annual Salary or more than the maximum permitted under Salary Sacrifice from time to time. This reduction will determine the level of Employer contributions, as described in paragraph 1.2 (Employer contributions) below.
A Valliant Member’s Employer will contribute to the Scheme in respect of each Valliant Member who is aged 75 or less in accordance with the following table, or at such other rate as the Valliant Member’s Employer decides from time to time and notifies to the Valliant Member and the Trustees in writing.
Amount of pay reduction chosen by Valliant Member (expressed as a percentage of AnnualSalary)
Resultant contribution payable by Employer (expressed as a percentage of Annual Salary)
1% 6.1%
2% 8.2%
3% 10.3%
1.2 Employer contributions
(Rule 3.2)
4% 12.4%
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Employer contributions(Rule 3.2) cont.
It may be that a Valliant Member has chosen an amount greater than 4% of Annual Salary for pension contribution purposes under Salary Sacrifice. If so, the contribution payable by the Employer will increase from 12.4% by a further 1.1% for each additional 1% reduction chosen by the Member (up to the maximum permitted under Salary Sacrifice from time to time). These additional Employer contributions above 12.4% (less 0.1% for each additional 1%reduction chosen by the Member above 4%), will be known as “Salary Sacrifice AVCs” for the purposes of Rule 6.1.1 (benefits on death in Employment before age 75 – benefits payable).
Members who at any time choose a reduction of less than 1% of Annual Salary will be treated as having left Employment unless otherwise agreed by Hewlett-Packard. The contribution payable for the month in which the Member leaves Employment or dies will be a proportionate amount calculated on a daily basis, unless the Trustees decide otherwise.
1.3 Additional Employer contributions
(Rule 3.2)
In addition to the Employer contributions described in paragraph 1.2 (Employer contributions) above, the Valliant Member’s Employer will contribute to the Scheme an additional 4% of Annual Salary in respect of each Valliant Member. These additional Employer contributions (and the contributions described in paragraph 1.2 above (Employer contributions)) will cease on the Valliant Member leaving Employment or when the Valliant Member reaches age 75, whichever is earlier.
2. Benefits on death in Employment before age 75 (Rule 6.1)
2.1 Excluded Excess Value
(Rule 6.1.1)
Notwithstanding Rule 6.1.1 (benefits on death in Employment before age 75 - benefits payable), that part of the Valliant Member’s Retirement Account which represents the value of the Employer contributions (excluding Salary Sacrifice AVCs) as referred to in paragraph 1.2 (Employer contributions) above and the additional Employer contributions referred to in paragraph 1.3 (additional Employer contributions) above will not form part of the ValliantMember’s Excluded Excess Value for the purposes of Rule 6.1(benefits in death on Employment before age 75).
A11385691/1.0/21 Dec 200952
Schedule 8West LB Members
This Schedule 8 applies to a HP Scheme Member:
(a) who joined the Hewlett-Packard Limited Pension Scheme for retirement benefits on 1January 2005 (the “Transfer Date”); and
(b) who was, immediately before that date, either an active member of the West LB Pension Scheme (“West LB Members”) or was entitled to become an active member of the West LB Pension Scheme (“Group Life only Members”); and
(c) who remained an active member of the Hewlett-Packard Limited Pension Scheme until he or she joined the Scheme on 1 January 2010.
Such HP Scheme Members will be known as “West LB Members” or “Group Life only Members”, as appropriate. These special terms only apply to those Members who have been notified of such special terms by Hewlett-Packard.
Note: Group Life only Members, as described above, who joined the Hewlett-Packard LimitedPension Scheme on the Transfer Date are treated as West LB Members for the purposes of the Scheme and this Schedule 8. Those Group Life only Members who did not join the Hewlett-Packard Limited Pension Scheme on the Transfer Date and who remain in Employment are treated as life assurance only members under Rule 2.2 (Employees entitled to death-in-service benefits only).
Benefits for the above-mentioned Members will be calculated and paid in accordance with theseRules (as they apply to HP Scheme Members) subject to the following modifications:
1 Contributions by Employers and Members (Rule 3)
1.1 Member contribution rate
(Rule 3.1)
A West LB Member is not required to contribute to the Scheme.
Note: West LB Members do not participate in Salary Sacrifice for pension contribution purposes.
1.2 Employer contribution rate
(Rule 3.2)
The West LB Member’s Employer will contribute to the Scheme in respect of each West LB Member in its Employment who is aged 75 or less at the rate of 10% of the West LB Member’s Annual Salary, or at such other rate as the West LB Member’s Employer decides from time to time and notifies to the Member and the Trustees in writing.
These contributions payable by a West LB Member’s Employer will continue only during a single continuous period of Employment with the West LB Member’s Employer.
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2 Benefits on death in Employment before age 75 (Rule 6.1)
2.1 Spouse’s pension
(Rule 6.1.3)
The Spouse’s pension under Rule 6.1.3 (benefits on death in Employment before age 75 – Spouse’s pension) will be 40% of theWest LB Member’s Annual Salary.
Note: A lower percentage (but not a higher percentage) can be chosen by a West LB Member under Salary Sacrifice, unless otherwise agreed by Hewlett-Packard.
These special terms will continue only during a single continuous period of Employment with the West LB Member’s Employer.
2.2 Excluded Excess Value
(Rule 6.1.1)
Notwithstanding Rule 6.1.1 (benefits on death in Employment before age 75 - benefits payable), that part of the West LB Member’s Retirement Account which represents the value of the Employer contributions referred to in paragraph 1.2 (Employer contributions)above will not form part of the West LB Member’s Excluded Excess Value for the purposes of Rule 6.1 (benefits on death in Employment before age 75).
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Schedule 9Bank of Ireland Members
This Schedule 9 applies to a HP Scheme Member:
(a) who joined the Hewlett-Packard Limited Pension Scheme for retirement benefits on 1 April 2004 (the “Transfer Date”); and
(b) who was, immediately before that date, employed by the Bank of Ireland or one of its associated companies; and
(c) who remained an active member of the Hewlett-Packard Limited Pension Scheme until he or she joined the Scheme on 1 January 2010.
Such HP Scheme Members will be known as “Bank of Ireland Members”. These special terms only apply to those Bank of Ireland Members who have been notified of such special terms by Hewlett-Packard.
Benefits for Bank of Ireland Members will be calculated and paid in accordance with these Rules (as they apply to HP Scheme Members) subject to the following modifications:
1. Contributions by Employers and Members (Rule 3)
1.1 Member contributions
(Rule 3.1)
A Bank of Ireland Member is not required to contribute to the Scheme.
Note: Bank of Ireland Members have agreed a reduction in their Annual Salary for pension contribution purposes through Salary Sacrifice. The reduction is chosen by the Bank of Ireland Member but must not be less than 1% of Annual Salary or more than the maximum permitted under Salary Sacrifice from time to time. This reduction will determine the level of Employer contributions, as described in paragraph 1.2 (Employer contributions) below.
A Bank of Ireland Member’s Employer will contribute to the Scheme in respect of each Bank of Ireland Member who is aged 75 or less in accordance with the following table, or at such other rate as the Bank of Ireland Member’s Employer decides from time to time and notifies to the Bank of Ireland Member and the Trustees in writing.
Amount of pay reduction chosen by Bank of Ireland Member (expressed as a percentage of Annual Salary)
Resultant contribution payable by Employer (expressed as a percentage of Annual Salary)
1% 6.1%
2% 8.2%
3% 10.3%
1.2 Employer contributions
(Rule 3.2)
4% 12.4%
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Employer contributions (Rule 3.2) cont.
It may be that a Bank of Ireland Member has chosen an amount greater than 4% of Annual Salary for pension contribution purposes under Salary Sacrifice. If so, the contribution payable by the Employer will increase from 12.4% by a further 1.1% for each additional 1% reduction chosen by the Member (up to the maximum permitted under Salary Sacrifice from time to time). These additional Employer contributions above 12.4% (less 0.1% for each additional 1% reduction chosen by the Member above 4%), will be known as “Salary Sacrifice AVCs” for the purposes of Rule 6.1.1 (benefits on death in Employment before age 75 – benefits payable).
Members who at any time choose a reduction of less than 1% of Annual Salary will be treated as having left Employment unless otherwise agreed by Hewlett-Packard. The contribution payable for the month in which the Member leaves Employment or dies will be a proportionate amount calculated on a daily basis, unless the Trustees decide otherwise.
These contributions payable by a Bank of Ireland Member’s Employer will continue only during a single continuous period of Employment with the Bank of Ireland Member’s Employer.
2. Benefits on death in Employment before age 75 (Rule 6.1)
2.1 Lump sum death in Employment benefit
(Rule 6.1.2)
The lump sum benefit provided under Rule 6.1.2 (benefits on death in Employment before age 75 – lump sum benefit) is equal to 4 times the Bank of Ireland Member’s Annual Salary at the date of death.
Note: A higher or lower multiple cannot be chosen by a the Bank of Ireland Member unless otherwise agreed by Hewlett-Packard.
2.2 Spouse’s pension
(Rule 6.1.3)
The pension provided under Rule 6.1.3 (benefits on death in Employment before age 75 – Spouse’s pension) is equal to 25% of the Bank of Ireland Member’s Annual Salary at the date of death.
Note: A higher or lower percentage cannot be chosen by a Bank of Ireland Member unless otherwise agreed by Hewlett-Packard.
2.3 Excluded Excess Value
(Rule 6.1.1)
Notwithstanding Rule 6.1.1 (benefits on death in Employment before age 75 - benefits payable), that part of the Bank of Ireland Member’s Retirement Account which represents the value of the Employer contributions (excluding Salary Sacrifice AVCs) as referred to in paragraph 1.2 (Employer contributions) above will not form part of the Bank of Ireland Member’s Excluded Excess Value for the purposes of Rule 6.1 (benefits on death in Employment before age 75).
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Schedule 10EYP Members
This Schedule 10 applies to a HP Scheme Member:
(a) who joined the Hewlett-Packard Limited Pension Scheme for retirement benefits on 1 March 2008 (the “Transfer Date”); and
(b) who was, immediately before that date, employed by EYP Mission Critical Facilities; and
(c) who remained an active member of the Hewlett-Packard Limited Pension Scheme until heor she joined the Scheme on 1 January 2010.
Such HP Scheme Members will be known as “EYP Members”. These special terms only apply to such EYP Members who have been notified of such special terms by Hewlett-Packard.
Benefits for an EYP Member will be calculated and paid in accordance with the Rules of the Scheme (as they apply to HP Scheme Members) subject to the following modifications:
1. Contributions by Employers and Members (Rule 3)
1.1 Member contributions
(Rule 3.1)
An EYP Member is not required to contribute to the Scheme.
Note: EYP Members have agreed a reduction in their Annual Salaryfor pension contribution purposes through Salary Sacrifice. The reduction is chosen by the EYP Member but must not be less than 1% of Annual Salary or more than the maximum permitted under Salary Sacrifice from time to time. This reduction will determine the level of Employer contributions, as described in paragraph 1.2(Employer contributions) below.
An EYP Member’s Employer will contribute to the Scheme in respect of each EYP Member who is aged 75 or less in accordance with the following table, or at such other rate as the EYP Member’s Employer decides from time to time and notifies to the EYP Member and the Trustees in writing.
Amount of pay reduction chosen by EYP Member (expressed as a percentage of Annual Salary)
Resultant contribution payable by Employer (expressed as a percentage of Annual Salary)
1% 6.1%
2% 8.2%
3% 10.3%
1.2 Employer contributions
(Rule 3.2)
4% 12.4%
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Employer contributions(Rule 3.2) cont.
It may be that an EYP Member has chosen an amount greater than 4% of Annual Salary for pension contribution purposes under Salary Sacrifice. If so, the contribution payable by the Employer will increase from 12.4% by a further 1.1% for each additional 1% reduction chosen by the Member (up to the maximum permitted under Salary Sacrifice from time to time). These additional Employer contributions, above 12.4% (less 0.1% for each additional 1% reduction chosen by the Member above 4%), will be known as “Salary Sacrifice AVCs” (for the purposes of Rule 6.1.1 (benefits on death in Employment before age 75 – benefits payable).
Members who at any time choose a reduction of less than 1% of Annual Salary will be treated as having left Employment unless otherwise agreed by Hewlett-Packard. The contribution payable for the month in which the Member leaves Employment or dies will be a proportionate amount calculated on a daily basis, unless the Trustees decide otherwise.
1.3 Additional Employer contributions
(Rule 3.2)
In addition to the Employer contributions described in paragraph 1.2 (Employer contributions) above the EYP Member’s Employer will contribute to the Scheme an additional Employer contribution of 12% of Annual Salary.
These additional Employer contributions (and the contributions described in paragraph 1.2 (Employer contributions))above will cease on whichever is the earlier of:
(a) the termination of Employment of the EYP Member; or
(b) the EYP Member reaching age 75.
2. Benefits on death in Employment before age 75 (Rule 6.1)
2.1 Excluded Excess Value
(Rule 6.1.1 )
Notwithstanding Rule 6.1.1 (benefits on death in Employment before age 75 - benefits payable), that part of the EYP Member’s Retirement Account which represents the value of the additional Employer contributions (excluding Salary Sacrifice AVCs) as referred to in paragraph 1.2 (Employer contributions) above and paragraph 1.3 above (additional Employer contributions) will not form part of the EYP Member’s Excluded Excess Value for the purposes of Rule 6.1 (benefits on death in Employment before age 75).
A11385691/1.0/21 Dec 200958
Schedule 11Colubris Members
This Schedule 11 applies to a HP Scheme Member:
(a) who joined the Hewlett-Packard Limited Pension Scheme for retirement benefits on 1 November 2008 (the “Transfer Date”);
(b) who immediately before that date was an active member of a Group Personal Pension Plan with Aegon Scottish Equitable; and
(c) who remained an active member of the Hewlett-Packard Limited Pension Scheme until he or she joined the Scheme on 1 July 2010.
Such HP Scheme Members will be known as “Colubris Members”. These special terms only apply to those Colubris Members who have been notified of such special terms by Hewlett-Packard.
Contributions for Colubris Members will be calculated in accordance with these Rules (as they apply to HP Scheme Members) subject to the following modifications:
1. Contributions by Employers and Members (Rule 3)
1.1 Additional Employer contributions
(Rule 3.2)
In addition to the Employer contributions described in Rule 3.2.2(Employer contributions for HP Scheme Members who joined the Hewlett-Packard Limited Pension Scheme before 1 January 2009), the Colubris Member’s Employer will contribute to the Scheme an additional Employer contribution of 15% of Annual Salary. These additional Employer contributions will cease on whichever is the earlier of:
(a) the termination of the Member’s Employment; or
(b) upon the Member reaching age 75.
2. Benefits on death in Employment before age 75 (Rule 6.1)
2.1 Excluded Excess Value
(Rule 6.1.1)
Notwithstanding Rule 6.1.1 (benefits on death in Employment before age 75 - benefits payable), that part of the Colubris Member’s Retirement Account which represents the value of the additional Employer contributions referred to in paragraph 1.1 (additional Employer contributions) above will not form part of the Colubris Member’s Excluded Excess Value for the purposes of Rule 6.1(benefits on death in Employment before age 75).
A11385691/1.0/21 Dec 200959
Schedule 12Gingko Members
This Schedule 12 applies to a HP Scheme Member:
(a) who joined the Hewlett-Packard Limited Pension Scheme for retirement benefits on 1 April 2009 (the “Transfer Date”); and
(b) who, immediately before that date, was an active member of one of the following pension arrangements:
The AAH Lloyds Pension Scheme;
The Admenta Pension Scheme;
Clerical Medical Stakeholder Pension Plan; or
such other pension arrangements as Hewlett-Packard agree to take account of for the purposes of this Schedule 12; and
(c) who remained an active member of the Hewlett-Packard Limited Pension Scheme until he or she joined the Scheme on 1 January 2010.
Such HP Scheme Members will be known as “Gingko Members”. These special terms only apply to those Gingko Members who have been notified of such special terms by Hewlett-Packard.
Benefits for all Gingko Members will be calculated in accordance with the Rules of the Scheme (as they apply to the HP Scheme Members) subject to the following modifications:
1. Contributions by Employers and Members (Rule 3)
1.1 Member contributions
(Rule 3.1)
A Gingko Member is not required to contribute to the Scheme.
Note: Gingko Members have agreed a reduction in their Annual Salary for pension contribution purposes through Salary Sacrifice.The reduction is chosen by the Gingko Member but must not be less than 3% of Annual Salary or more than the maximum permitted under Salary Sacrifice from time to time. This reduction will determine the level of Employer contributions, as described in paragraph 1.2 (Employer contributions) below.
1.2 Employer contributions
(Rule 3.2)
A Gingko Member’s Employer will contribute to the Scheme in respect of each Gingko Member in its Employment who is aged 75 or less in accordance with the following table, or at such other rate as the Gingko Member’s Employer decides from time to time and notifies to the Gingko Member and the Trustees in writing.
A11385691/1.0/21 Dec 200960
Amount of pay reduction chosen by Gingko Member (expressed as a percentage of Annual Salary)
Resultant contribution payable by Employer (expressed as a percentage of Annual Salary)
3% 6%
4% 8%
5% 10%
6% 12%
Employer contributions cont.(Rule 3.2)
It may be that a Gingko Member has chosen an amount greater than 6% of Annual Salary for pension contribution purposes under Salary Sacrifice. If so, the contribution payable by the Employer will increase from 12% by a further 1% for each additional 1% reduction chosen by the Member (up to the maximum permitted under Salary Sacrifice from time to time). These additional Employer contributions above 12%, will be known as “Salary Sacrifice AVCs” for the purposes of Rule 6.1.1 (benefits on death in Employment before age 75 – benefits payable).
1.3 Additional Employer contributions
(Rule 3.2)
In addition to the Employer contributions described in paragraph 1.2 (Employer contributions) above, the Gingko Member’s Employer will contribute such additional Employer contributions as has been notified to the Gingko Member by Hewlett-Packard.
These additional Employer contributions (and the contributions described in paragraph 1.2 (Employer contributions)) above will cease on whichever is the earlier of:
(a) 1 April 2016;
(b) the termination of Employment of the Gingko Member; or
(c) the Gingko Member reaching age 75.
2 Benefits on death in Employment before age 75 (Rule 6.1)
2.1 Excluded Excess Value
(Rule 6.1.1)
Notwithstanding Rule 6.1.1 (benefits on death in Employment before age 75 - benefits payable), that part of the Gingko Member’s Retirement Account which represents the value of the additional Employer contributions (excluding Salary Sacrifice AVCs) as referred to in paragraph 1.2 (Employer contributions) above and 1.3(additional Employer contributions) above will not form part of the Gingko Member’s Excluded Excess Value for the purposes of Rule 6.1 (benefits on death in Employment before age 75).
A11385691/1.0/21 Dec 200961
Schedule 13Unilever Members
This Schedule 13 applies to a HP Scheme Member:
(a) who joined the Hewlett-Packard Limited Pension Scheme for retirement benefits on 1 June 2008 (the “Transfer Date”); and
(b) who, immediately before that date, was an active member of Unilever UK Pension Fund; and
(c) who remained an active Member of the Hewlett-Packard Limited Pension Scheme until he or she joined the Scheme on 1 July 2010.
Such HP Scheme Members will be known as “Unilever Members”. These special terms only apply to those Unilever Members who have been notified of such special terms by Hewlett-Packard.
Benefits for Unilever Members will be calculated in accordance with these (as they apply to HP Scheme Members) subject to the following modifications:
1. Contributions by Members and Employers (Rule 3)
1.1 Member contributions
(Rule 3.1)
A Unilever Member is not required to contribute to the Scheme.
Note: Unilever Members have agreed a reduction in their Annual Salary for pension contribution purposes through Salary Sacrifice. The reduction is chosen by the Unilever Member but must not be less than 1% of Annual Salary or more than the maximum permitted under Salary Sacrifice from time to time. This reduction will determine the level of Employer contributions, as described in paragraph 1.2 (employer contribution rate) below.
A Unilever Member’s Employer will contribute to the Scheme in respect of each Unilever Member who is aged 75 or less in accordance with the following table, or at such other rate as the Unilever Member’s Employer decides from time to time and notifies to the Unilever Member and the Trustees in writing.
Amount of pay reduction chosen by Unilever Member (expressed as a percentage of Annual Salary)
Resultant contribution payable by Employer (expressed as a percentage of Annual Salary)
1% 6.1%
2% 8.2%
3% 10.3%
1.2 Employer contributions
(Rule 3.2)
4% 12.4%
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Employer contributions (Rule 3.2) cont.
It may be that a Unilever Member has chosen an amount greater than 4% of Annual Salary for pension contribution purposes under Salary Sacrifice. If so, the contribution payable by the Employer will increase from 12.4% by a further 1.1% for each additional 1% reduction chosen by the Member (up to the maximum permitted under Salary Sacrifice from time to time). These additional Employer contributions above 12.4% (less 0.1% for each additional 1% reduction chosen by the Member above 4%), will be known as “Salary Sacrifice AVCs” for the purposes of Rule 6.1.1 (benefits(benefits on death in Employment before age 75 – benefits payable).
Members who at any time choose a reduction of less than 1% of Annual Salary will be treated as having left Employment unless otherwise agreed by Hewlett-Packard. The contribution payable for the month in which the Member leaves Employment or dies will be a proportionate amount calculated on a daily basis, unless the Trustees decide otherwise.
These contributions payable by a Unilever Member’s Employer will continue only during a single continuous period of Employment with the Unilever Member’s Employer.
1.3 Additional Employer contributions
(Rule 3.2)
In addition to the Employer contributions described in paragraph 1.2 above (Employer contributions) the Unilever Member’s Employer will contribute to the Scheme, in respect of each Unilever Member, such additional Employer contributions as is notified to each Unilever Member and the Trustees (on such terms as has been notified to the Unilever Member).
These additional Employer contributions will cease on whichever is the earlier of:
(a) 31st May 2011;
(b) the termination of Employment of the Unilever Member; or
(c) the Unilever Member reaching age 75.
2. Benefits on death in Employment before age 75 (Rule 6.1)
2.1 Spouse’s and children’s pension
Rule 6.1.3 and 6.1.4)
If the Unilever Member dies in Employment:
(a) the Spouse’s pension payable will be the higher of the pension payable as an HP Scheme Member, as described in Rule 6.1.3 (benefits on death in Employment before age 75-Spouse’s pension) and a “Unilever Spouse’s Pension”; and
(b) the children’s pension payable will be the higher of the pension payable as an HP Scheme Member, as described in Rule 6.1.4 (benefits on death in Employment before age 75-children’s pensions) and a “Unilever Child’s Pension”.
A11385691/1.0/21 Dec 200963
Spouse’s and children’s pension (Rule 6.1.3 and 6.1.4) cont.
A “Unilever Spouse’s Pension” and a “Unilever Child’s Pension” is the pension that would have been payable in respect of the Unilever Member had he or she died in service while an active member of the Unilever UK Pension Fund (based on the rules that were in place in that scheme as at 1 June 2008).
These special terms will cease on whichever is the earlier of:
(a) 31st May 2011;
(b) the termination of Employment of the Unilever Member; or
(c) the Unilever Member reaching age 75.
2.2 Excluded Excess Value
(Rule 6.1.1)
Notwithstanding Rule 6.1.1 (benefits on death in Employment before age 75 - benefits payable), that part of the Unilever Member’s Retirement Account which represents the value of the Employer contributions (excluding Salary Sacrifice AVCs) described in paragraph 1.2 (Employer contributions) above and the additional Employer contributions referred to in paragraph 1.3 (additional Employer contributions) above will not form part of the UnileverMember’s Excluded Excess Value for the purposes of Rule 6.1(benefits in death on Employment before age 75).
