Plan constitution

This section tells you a little about how the Plan is run and the regulations that govern it.

Who runs the Plan?

The Trustee of the Plan is BESTrustees Limited.

• The Trustee

  The Trustee of the Plan is BESTrustees Limited.

  BESTrustees Limited are an independent firm providing expert professional pension trusteeship services to occupational pension schemes throughout the UK.

  For the ZF UK Pension Plan, BESTrustees Limited act as the Professional Corporate Sole Trustee.

  BESTrustees have a multi-disciplinary team and are represented by a number of executives who are recognised as industry leaders in their own right. They have many years' experience having worked in:

  • Accountancy
  • Actuarial consulting
  • Administration
  • Investment
  • Pensions management
  • Pension Law

  The Trustee is responsible for carrying out the purposes of the Trust in accordance with the Trust Deed and Rules. It ensures that benefits are paid and the assets of the Plan are protected. If you need to contact the Trustee then you should write to the Trustee Secretary.

  The Trustee is also responsible for producing the annual Trustee Report and Accounts which includes the Plan’s audited accounts and actuarial and investment statements. If you would like a paper copy you should write to the Trustee Secretary.

• Legal Status

  HM Revenue and Customs has approved the Plan. This means that contributions to the Plan and earnings from its investments (except for UK dividends) are tax-free as long as benefits and funding do not exceed limits set by HM Revenue & Customs.

  When open, the Plan was contracted-out of the State Second Pension (S2P). This means that you did not earn any S2P pension while you were a member of the Plan.

  However, in order to contract-out, the Plan had to satisfy the Reference Scheme test. This means that for at least 90% of the Plan membership, the level of benefits received from the Plan must be at least equal to the Reference Scheme.

  As a result of being contracted-out of S2P, you paid lower National Insurance contributions.

  Reference Scheme Test

  The Plan Actuary must certify that at least 90% of the benefits provided by the Plan are broadly equivalent or better than the Reference Scheme.

  The Reference Scheme is calculated using the following formula:

  Service ÷ 80 x average qualifying earnings in the last three years*

  *Average qualifying earnings is calculated as 90% of earnings between the Lower Earnings Limit (x52) and the Upper Accrual Point (x52).

  The normal retirement age of the Reference Scheme is 65 and there is a Spouse’s pension of 50%.

• Trust Deed and Rules

  The Trustee must run the Plan in accordance with a set of legal documents called the Trust Deed and Rules. If you would like a copy please contact ZF UK Pension Plan, Corporate Services. A charge of £25 will be made for each copy that is sent.

  The Company reserves the right to amend the Plan at any time in the future but no amendment will have a detrimental effect on the benefits payable.