Factsheet 12 Jan 2017
Introduction
The Company operates the annual bonus sacrifice scheme, which gives employees the option to sacrifice some, or all,
of their annual bonus in order to provide additional pension benefits.
Before 1 April 2017, you have the opportunity to sacrifice some, or all, of your performance year 2016 annual bonus,
payable in April 2017.
If you are interested in the annual bonus sacrifice scheme, you should read this factsheet carefully as it contains
important information.
The Company reserves the right to amend or discontinue the annual bonus sacrifice scheme at any time.
BASF UK Group Pension Scheme
Group and BPP DC Sections (“the Scheme”)
Bonus Sacrifice
How bonus sacrifice works
The annual bonus sacrifice scheme is a Company arrangement which is designed to make contributions to the DC Section
of the Scheme more efficient:
Under the annual bonus sacrifice scheme,
before 1 April 2017, you have the option to sacrifice some, or all, of
your performance year 2016 annual bonus payable in April 2017. As your annual bonus is reduced, you pay
less tax and less National Insurance Contributions (NICs).
If you do sacrifice some, or all, of your annual bonus, your employer will arrange for the amount of annual bonus
you have sacrificed to be credited to your DC Account as an additional employer contribution. In respect of
annual bonus sacrificed for the performance year 2016 only, the Company has agreed to also contribute 10% of
the amount you sacrifice and will pay this 10% in to your DC Account. So for example, if you sacrifice
£1,000 the Company will reduce your bonus by this amount and pay £1,100 into your DC Account.
Under HM Revenue & Customs (HMRC) rules, you must give up any contractual rights to your annual bonus in
advance of entitlement.
Under HMRC rules, you also cannot change your mind for the relevant pay period. This means that:
•
Once you elect to sacrifice some or all of your performance year 2016 annual bonus, you cannot change
your mind; and
•
You must elect to sacrifice your 2016 performance year annual bonus before 1 April 2017.
The additional employer pension contribution in respect of your bonus sacrifice will be paid to your DC Account.
All contributions paid to your DC Account, will be used to provide benefits on retirement, death or leaving service
in accordance with the Scheme’s Trust Deed and Rules. Further information on the DC Section is set out in the
‘Your member guide’ booklets 1 and 2 (dated October 2015).
Factsheet 12 Jan 2017
Investment of the Bonus Sacrifice pension contribution
The Trustee of the Scheme will invest the Bonus Sacrifice pension contribution in respect of your bonus sacrifice in your
DC Account. You can choose where to invest it from the funds available. It can be invested differently to other
contributions but all bonus sacrifice contributions from past and future years must be invested together. Your current
year Bonus Sacrifice contributions will be invested as follows;
If you have previously paid Bonus Sacrifice contributions, it wil be invested in the same way as they are
invested. If you want to change the way you invest your Bonus Sacrifice contributions (past and future) you
should log on to ePA at
https://epa.towerswatson.com/doc/BASF/login.htm
If you have never made any Bonus Sacrifice before, it will be invested in line with your regular
contributions, unless you complete and return the attached, “Investment Instruction Form for commencement
of bonus sacrifice” to make a different investment choice, by 31 March.
Further information in respect of investing your DC Account is provided in the Investment guide, available on the
pension website at
http://ukpensions.basf.co.uk
What do I need to do next?
Log into
Ingenuity on the Web
(HR self service) and complete the “Bonus Sacrifice” page, found under the “Employment”
tab. If you have problems accessing Ingenuity on the Web or any other Bonus Sacrifice queries, please contact your
local HR Team or the HR Service Centre at Cheadle on 0161 488 5333 or hr.plc@basf.com.
Remember to
press confirm and you must tick the declaration at the bottom.
Important things to consider
1. Please note by law, the Company, its employees and the Trustee of the Scheme cannot give you financial
advice. If you would like financial advice, you should seek advice from an independent financial adviser. The
adviser may charge you a fee. You can obtain details of a local adviser by visiting:
www.unbiased.co.uk
2. If your total contributions made by you and your employer to the Scheme, plus additional contributions you
may make to any other pension arrangement, are more than the Annual Allowance (£40,000* for the
2016/2017 tax year), you may be subject to an additional tax charge. If you are a former member of the
Group defined benefit (DB) Section or BPP Hybrid Section of the Scheme, increases in your accrued DB
pension may also be included in the Annual Allowance. Read more at:
http://www.gov.uk/tax-on-your-
private-pension/annual-allowance
(*may be lower if your income is more than £110,000 p.a. or you have accessed a pension pot)
3. If you choose to sacrifice some, or all, of your annual bonus, this will reduce your earnings for some external
purposes such as mortgate applications.
You can amend your Bonus Sacrifice amount as many times as you like during March. Your final choice will be taken at
midnight on 31 March and confirmed by email shorlty after.
BASF UK Group Pension Scheme
Group and BPP DC Sections
(“the Scheme”)
Investment Instruction for
commencement of bonus
sacrifice
You should complete this form if you are about to pay Bonus Sacrifice for the first time and want to invest it
differently to your regular contributions.
If you have previously paid Bonus Sacrifice see ‘Important notes’ overleaf (you should not use this form).
Your details, please complete in BLOCK CAPITALS
Surname:
Title:
Forename(s):
Date of Birth:
National Insurance No:
Employee No:
Site Location:
Email Address:
Investment instruction
You can choose
one of the two investment paths available, LifePlan or FreePlan, by completing either the LifePlan or
FreePlan section below:
OR
LifePlan
I want to invest my Bonus Sacrifice in LifePlan.
Please tick
one of the Growth Fund options:
Adventurous Fund
Moderate Fund
Cautious Fund
Please tick
one of the retirement benefit goals to
target:
Guaranteed income (annuity)
Flexible income (flexi-access drawdown)
Cash lump sum
I want a Target Pension Date of:
(Insert date between age 55 – 75)
Please note your chosen Target Pension Date will
apply to
all of your LifePlan investments in your
DC
Account, not just your Bonus Sacrifice.
FreePlan
I want to invest my Bonus Sacrifice in FreePlan as
shown below.
Please insert a percentage next to your chosen funds
(minimum 10%).
Fund
%
Adventurous Fund
Moderate Fund
Cautious Fund
Ethical Fund
Amanah Fund
Pre-Retirement Fund
Sterling Liquidity Fund
Total
100%
PTO
I wish to pay Bonus Sacrifice as indicated on Ingenuity on the Web at 31 March and this being the first time I have
paid Bonus Sacrifice, wish the money to be invested as follows:
Note: if you choose to invest in LifePlan, elsewhere you will see it labelled according to the Growth Fund and target benefit
goal you have chosen. For example, if you chose the Adventurous Fund and a Flexible Income, this is the “Adventurous Flexible
income LifePlan”.
Signature of Member:
Date:
Please return your completed form to the Scheme Administrator, Willis Towers Watson at:
email: basf@willistowerswatson.com
post: Willis Towers Watson, PO Box 545, Redhill RH1 1YX
You should also keep a copy for your records.
Important notes
● Please see the Investment Guide (January 2016) for the details of the investment options available in the
Scheme.
● The investments you have chosen will apply to all Bonus Sacrifice paid to your DC Account.
● If you have previously paid Bonus sacrifice and wish to change your investment choices, you can do so by
logging onto ePA at
https://epa.towerswatson.com/doc/BASF/login.htm. If you need help logging on, contact
Willis Towers Watson on 0113 390 7119.
● If you are in any doubt about paying Bonus Sacrifice you are recommended to seek independent financial advice.
Using the information you provide on this form
Providing your mobile phone number and email address is optional. If you do choose to provide these details, they will be held by the BASF Group, the
Trustees and their advisers and only used to provide you with information relating to the BASF UK Group Pension Scheme. Your details will not be passed
to any third parties to be used for any other purpose. If, at any time, you wish to stop being sent BASF UK Group Pension Scheme updates via your mobile
phone or email, you can request to opt out and we will remove these details from our system. Any information you provide will be held and processed in
accordance with the Data Protection Act 1998.
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