Transfer of Defined Contribution Savings (“DC”) and Additional Voluntary Contributions (‘’AVCs’’) from the Firth Rixson Pension Plan (“the Plan”) into the Mercer Master Trust (“MMT”)

In 2022, the decision was made to transfer of members’ DC and AVCs in the Plan to the Mercer Master Trust (“MMT”). Details of the transfer are set out below.

Background to the Transfer

Over the course of 2022, we worked with the Company and our advisers to undertake a detailed review of the DC Savings and AVCs held in the Plan. The purpose of the review was to determine whether there was a better way to provide pension benefits for members with DC Savings and AVCs in the Plan, considering the retirement freedoms and the rapidly developing pensions market, and recognising that pensions are an important and valued benefit for members.

As part of this review, we looked at the services that were being provided and considered the value for money that they represent. The finding of our review lead us to the conclusion that the MMT would provide you with enhancements to the benefits that you currently enjoy in the Plan.

We are satisfied that the transfer is consistent with our responsibilities under the Plan and trust law. We have summarised some of the key advantages of the transfer below.

What is a Master Trust?

A Master Trust is a multi-employer occupational pension arrangement governed under trust (like the Plan) with individual sections for participating employers who are not connected to one another.

A Master Trust is overseen and run by a single set of professional independent trustees who are subject to the same legal requirements as the Trustee of the Plan, as well as additional requirements from the Pensions Regulator and specific obligations relating to master trust arrangements.

The advantages of transferring to the Mercer Master Trust include:

• flexible and easy access to a variety of retirement options and greater support at retirement;
• a strong governance structure via independent professional trustees who are required to quickly adapt to changes in legislation and constantly evolve the offering, such as new investment approaches or means of communication to support you in building your retirement savings;
• online access and mobile apps that allow you to view savings, change funds and update your personal details whenever you want;
• access to wider savings options and broader support with financial health and wellbeing; and
• provision of a well-regarded default investment fund and a range of self-select fund options.

Summary of the Transfer

• If you are affected, you will have received a welcome communication in mid-December 2022 with instructions on how to log-in to your new online account.
• Your benefits are now administered by Aviva on behalf of the MMT Trustee and their contact details should have been provided as part of your welcome communication.
• At the point of transfer, your AVC investments were mapped to the default fund in the MMT which was the Mercer SmartPath targeting cash strategy.
• Your benefits under the MMT are provided in accordance with its trust deed and rules which will be available to view in your MMT Account.
• If you die before the whole of your retirement account has been used to provide benefits, the MMT Trustee will have the discretion to pay the remaining balance to one or more of your beneficiaries, in accordance with the rules of the MMT.
• For individuals who also have DB benefits in the Plan, you retain the option to transfer back your DC Savings or AVCs (with the amount determined by reference to the value of the DC Savings at that time) from the MMT to the DB section of the Plan to use as part of your tax-free cash entitlement from the Plan.

Contact information

If you need further information about your benefits please contact Mercer using the below link:

Contact Mercer Admin