JLR Defined Contribution Fund

What is a Defined Contribution Pension Fund?

A defined contribution (DC) or money purchase pension scheme is one that invests the money you pay into it, together with any employer’s contribution and gives you an accumulated sum on retirement – with which you can secure a pension income, either by buying an annuity or using income drawdown.

A DC Fund is run by an external pension provider (in this case, Scottish Widows) and joined by members on an individual basis, so they each have an individual pension pot. It’s just like taking out a personal pension, although the Company also makes a contribution on your behalf.

As the pension is directly related to the investment pot, there is no guarantee on the amount you will receive on retirement, as it depends on how the investments perform.

Click here to download the Fund’s Member Guide.

Frequently Asked Questions

Change in Circumstances (7 Answers)

[-][+] Can I transfer my pension from my previous job into the JLR pension Fund?

You should contact Zurich on the details in the ‘Further Information’ section below to check if the Fund will accept the transfer or for more information.

[-][+] What happens if I get seriously ill and cannot work?

If you are absent from work because of illness and you can no longer work on grounds of ill health or disability, a benefit may be payable under the Company’s ill health scheme.

This benefit will be calculated as 2/3 of pensionable pay (ignoring any reduction as a result of participating in PSS). This benefit will be paid until age 65 and will increase in line with changes in the Retail Prices Index subject to a maximum of 5% p.a.

This benefit cannot be paid until you have been absent from work continuously for at least 52 weeks. In addition, contributions will continue to be paid into your fund and at age 65, if you are still receiving ill health benefit it will cease and you will take your pension from your normal pension fund as if you had retired.

[-][+] What happens if I get sick?

Your contributions will be made from the Company Sick Pay you receive rather than your normal salary. Details about Company Sick Pay are available from HR.

If you have a long-term absence from work, which has exhausted your entitlement to Company Sick Pay, and you no longer have any pay to sacrifice, the Company’s pension contributions will be nil during this period. You will be suspended from PSS during the period of long term absence.

[-][+] What happens if I go on maternity/paternity leave?

The Company will continue to pay the 8% of your normal pensionable pay as it stood before maternity/paternity leave. You will only pay your selected %contribution out of your maternity/paternity pay. However, the Company will then top this contribution up to what it would have been had it been taken as a % of your normal pensionable pay as it stood before maternity/paternity leave.

If you were to continue to participate in PSS during maternity leave, you would receive a reduced level of Statutory Maternity Pay (as SMP is based on average earnings and PSS reduces average earnings).  However, you are able to opt out of PSS 23 weeks before the expected due date so that your contractual salary can be increased to the pre sacrifice level in order to maximise SMP and avoid this reduction.

[-][+] What happens if I leave the Company?

On leaving service you and the Company stop paying into your plan and your entitlement to the additional death benefits and insured ill health benefits would also stop.

You may continue to pay single payments into your plan directly with Zurich, or you may leave the fund you have accumulated in the fund(s) selected by you (fund charges will still be applied) or you may transfer the value to another registered pension plan.

Contact Zurich on the details in the ‘Further Information’ section below to find out more.

[-][+] What happens to my pension if I die before retirement?

Your dependants may be entitled to benefits from the Jaguar Land Rover Group Life Assurance Plan, subject to any limits imposed by HM Revenue & Customs.

 This plan provides:
  • A lump sum equal to 3.5 times the pensionable pay as well as the value of your investment via Zurich.
  • A pension for any spouse calculated as 25% of the Member’s pensionable pay.
  • A Child’s pension for any children calculated as 25% of the Member’s pensionable pay divided between them, up until age 18, or age 23 providing they remain in full time education​. The maximum for one child is 12.5%.

For more information please see the guide to death and ill health benefits

[-][+] Who do I tell when I change address?

You must inform Zurich, by contacting them on the details in the ‘Further Information’ section below.

Contributions (13 Answers)

[-][+] Can I contribute to other pension schemes at the same time?

As well as your occupational pension plan, you may also invest in other pension arrangements. Please seek independent financial advice for further information – visit http://www.unbiased.co.uk/. You will be able to get contact details for Independent Financial Advisers based in your area.

[-][+] Can I decrease how much I contribute?

You may decrease your contributions if you are contributing more than 4%, at any time.

Fill out the Contribution Amendment Form to change your contributions.

[-][+] Can I increase how much I contribute?

You may increase your contributions at any time. 

Fill out the Contribution Amendment Form to change your contributions.

[-][+] Can I make one off single payments?

To make a one-off payment contact Zurich for the details in the ‘Further Information’ section below.

It may also be possible to make a one-off payments via Payroll if the amount you wish to pay is less than you gross earnings in that pay period.

[-][+] How can I change the investment funds my contributions goes into?

The investment funds that you choose can be changed by managing your account online​ at www.zurich.co.uk/save/jaguarlandrover or by contacting Zurich on 0800 030 4428.

[-][+] How do I know which investment is best?

There are four main types of investment:

  • Money market investments: money on deposit (e.g. cash in a bank or building society) and short term loans to raise cash.
  • Gilts and bonds: loans to companies or government
  • Property: physical buildings, usually commercial properties
  • Shares: stakes in a company (also called equities)

Each one works in a different way and carries its own particular investment risks.

Please see the Introduction to Investing Guide, which describes the different asset classes in more detail.

If you are not comfortable with making investment decisions you should seek help from a financial advisor. (Please see details in the ‘Further Information’ section below).

Once you are a Member of the plan, you can log in at www.zurich.co.uk/save/jaguarlandrover  to see how and where your money is invested at any time.

[-][+] How do I make payments into the pension plan?

The JLR DC pension Fund is based on a Pension Salary Sacrifice (PSS). This ‘salary sacrifice’ arrangement means that you sacrifice part of your pay and the company uses that sacrifice to make equivalent payments into your pension fund.

This means you will only pay income tax and National Insurance on your reduced salary.

You can find out more information about PSS here.

You can choose not to participate in the PSS arrangement at any time by requesting an opt-out form from HR Customer Operations on 0121 347 5951 (external) or 8795 9955 (internal).

[-][+] How much can I contribute?

The minimum contribution is 4% of your pensionable pay but there is no maximum limit, provided you are still left with pay of at least national minimum wage. If you wish to make contributions that leave you with less than national minimum wage, you will have to opt out of PSS.

[-][+] How much does the Company contribute?

The Company contributes 8% of your pensionable pay.  However if you increase your contribution to 5% the Company will pay 9%   if you increase to 6% or more the Company will pay 10%.

[-][+] What happens with my money?

Your contributions are invested in funds you choose from a list of available funds, until you take out your benefits on retirement.

Alternatively, you can choose the default option of the Default Lifestyle Strategy.

[-][+] What is my pensionable pay?

For hourly paid employees:

Hourly rate x Contractual hours per week x 52

For salaried employees:

Basic yearly salary

[-][+] What is the lifestyle strategy fund?

This means that your money is automatically moved into less volatile funds as you approach your selected retirement age. This can be useful to help defend against unexpected falls in fund prices as you reach retirement but could also mean you miss out on future investment growth as you approach retirement.

[-][+] What is the list of available funds?

Below are the Jaguar Land Rover Limited funds, but you also have the option to choose from the full range of funds. You can find more information on the funds and fund charges here

JLR Bond Fund

This fund seeks to achieve stable growth over the long term (over 10 years) with low levels of risk by investing in gilts and corporate bond assets. It is likely to deliver lower growth over the longer term than the other JLR Funds.

JLR Diversified Fund

This fund seeks to achieve medium to high levels of capital growth over the long-term with medium to high risk by investing in a mix of different asset types.

JLR Emerging Market Equities Fund

This fund seeks to achieve high levels of capital growth over the long-term, but with high levels of risk by investing predominately in shares issued by companies based in emerging markets. It is likely to deliver higher levels of risk over the long term than the other fund options.

 JLR Mixed asset – Equity 25-50% Fund

This fund seeks to achieve medium levels of capital growth over the longterm with low to medium risk by investing predominately in a diversified mix of corporate bonds, shares and other asset types.

 JLR Mixed asset – Equity 50-80% Fund

This fund seeks to achieve medium to high levels of capital growth over the long-term with medium to high risk by investing predominately in shares and other asset types.

 JLR Mixed asset – Equity 80-100% Fund

This fund seeks to achieve high levels of capital growth over the long-term, but with high levels of risk by investing predominately in shares. It is likely to deliver higher levels of risk over the long term than the other fund options.

 JLR Money Market Fund

This fund aims to give a high degree of capital stability (before charges), which is likely to result in a lower return over the longer-term (ten years or more, compared to other JLR funds available).

Final Pension Queries (8 Answers)

[-][+] How do I get a quote of the current value of my benefits and my projected pension?

Zurich will send you a statement each year showing the current value of your plan and projected future values.

You can get an up-to-date valuation at any time by visiting the website at www.zurich.co.uk/save/jaguarlandrover . You’ll need to use your personal ID and password, which you’ll be given when you start the plan, and select the ‘Investment values and Switches’ tab. Or contact Zurich on the details in the ‘Further Information’ section below.

[-][+] How do I take my pension?

Your fund will be used to purchase an annuity (pension) which is normally held with an Insurance Company. You will have a choice of both the annuity provider and the type of annuity to suit your personal circumstances at retirement. More details regarding this will be available as you approach retirement.

[-][+] How long will I get my pension for?

Once you retire, you will receive a pension for the rest of your life.

[-][+] How will my pension be paid?

Your pension will normally be payable monthly on retirement, but other options are available.

[-][+] Is it secure/guaranteed?

You should be aware of the following risk factors:

  • The value of your plan can go down – what you get back is not guaranteed.
  • The levels of risk and potential investment performance differ depending on the pension funds you choose.
  • Your plan may not buy the pension you expect.  For example, investment growth or annuity rates (or both) could be lower than expected at the time you take your benefits. More details can be found in the investment section of the Member Guide

Once pension is in payment however, it will often include a guarantee.

[-][+] When can I take my pension?

Default Retirement Age is 65, but this can be amended to any age between age 55 and age 75.

[-][+] When I die will my spouse/dependants receive a pension?

Pensions may be payable to your spouse/dependant’s depending on certain criteria. Please refer to the guide to death and ill health benefits for more information.

[-][+] Will my pension be taxed?

If you choose to take the optional lump sum on retirement, this will normally be granted tax free. However, whilst contributions are normally made tax free, the benefits paid out on retirement are subject to tax rules as earned income.

Further Information (4 Answers)

[-][+] Where can I get financial advice?

If you require independent financial advice you should visit www.unbiased.co.uk You will be able to get contact details for Independent Financial Advisers based in your area.

[-][+] Who do I contact if I have any further queries?

Address
Zurich Corporate Pensions Support Centre, PO Box 135, Cheltenham, Gloucestershire, GL5 8ZP.

Telephone Helpline
0800 030 4428

Email
supportcentredc@uk.zurich.com

[-][+] Why do I need to complete the Insured Benefits Nomination Form?

There may be a benefit on the death of a member that is paid at the discretion of the Company, acting as Trustee for the insured benefits arrangement. To enable the correct decision to be made, a completed Insured Benefit Nomination form will help the Trustee to know how you would wish the benefits to be distributed on your death.

It is important that, if your personal circumstances change you complete an updated form.

Zurich will also pay beneficiaries a cash sum or income (or both) from the fund you have accumulated if you die before you take a pension. The Zurich Nomination form is separate to the Insured Benefit Nomination form and should have been sent to you with your joining pack. If you require a new form please click here to download.

 

[-][+] What is Pensions Liberation?

Pensions liberation can take a number of forms. However, it mostly follows the basic principle of a member transferring his/her accrued pension rights into a receiving scheme that is set up so as to allow access to those benefits in a way which is not authorised by the relevant tax rules (eg by paying benefits before the member has attained minimum pension age).

These unauthorised payments from the receiving scheme to the member could attract a number of punitive tax charges and the receiving scheme will often levy a number of charges of its own on the member for providing this service. The member is usually unaware of the tax charges and additional costs associated with taking his/her benefits from the receiving scheme and these will often substantially reduce the value of the benefits he/she receives in respect of his/her transfer value.

If you are considering any such arrangement, further information is available from the following parties:

General (1 Answer)

[-][+] What is a Defined Contribution Pension Fund?

A defined contribution (DC) or money purchase pension scheme is one that invests the money you pay into it, together with any employer’s contribution and gives you an accumulated sum on retirement – with which you can secure a pension income, either by buying an annuity or using income drawdown.

A DC is run by an external pension provider (in this case, Zurich) and joined by members on an individual basis, so they each have an individual pension ’pot’. It’s just like taking out a personal pension, although your employer may also make a contribution on your behalf.

As the pension is directly related to the investment ‘pot’, there is no guarantee on the amount you will receive on retirement, as it depends on how the investments perform.

Joining/leaving the Pension Plan (3 Answers)

[-][+] Can I leave or opt-out of the pension plan?

Yes, you can ‘opt out’ or ‘cease’ your membership.

Upon joining the JLR DC Fund you have a 30 day cancellation period. You will be provided with a cancellation form within your welcome pack from Zurich. Providing the cancellation form is completed and returned within the 30 day cancellation period, any contributions you have made into the fund will be refunded. However, if you choose to ‘opt out’ after the 30 day cancellation period your funds will remain invested until you reach retirement age.

You should consider taking independent financial advice prior to making this decision. (Please see details in the ‘Further Information’ section above).

An ‘Opt Out Form’ can be requested from HR Direct (hrdirect@jaguarlandrover.com)

[-][+] Can I re-join at a later date if I leave/opt-out of the pension plan?

Yes, but you will need to provide medical evidence before you will be covered for the Death in Service and Ill Health benefits, which happens automatically when you are auto-enrolled but not if you opt-out and then re-join. This means you could potentially not be eligible for ill-health or death benefits.

The company will usually re-enrol you automatically every three years.

Contact HR Direct on 01926 691 747 (external) or 047 (internal) for more information.

[-][+] How do I join the pension plan?

All new employees default into the JLR Defined Contribution Fund on employment.

For those members who previously opted out of the Fund and wish to rejoin, should contact the HR Direct on 01926 691 747 (external) or 047 (internal) for further information.

Members of the Land Rover Pension Scheme, Jaguar Pension Plan and Halewood section also have the option to join the JLR DC Fund for Additional Voluntary Contributions purposes, for further information contact the JLR Pension Department via the above number.