Your guide to your 2021 pension statement
Hopefully by now you've received your pension statement in the post.
In your statement, you'll find lots of helpful links pointing you towards more information online. You can use this webpage and the links on it to find this information.
The best way to use this online information is alongside your pension statement.
Throughout your statement you’ll see that we mention ‘the Fund’ and ‘the Company’. When we mention the Fund, we’re referring to the Nestlé UK Pension Fund and when we mention the Company we’re referring to Nestlé UK.
Not all of this information will be relevant to you
We have lots of different members who have built up different types of benefits over time, so you'll find that not all of the information is relevant to you. In your statement we remind you which section you are currently in and how you are building up benefits – take some time to remind yourself of this if you aren't sure.
As a quick reminder though, you'll either be in defined benefit (DB) section or a defined contribution (DC) section. They build up benefits in different ways.
However, you may also be a member of a DB section who also has DC benefits or vice versa. If you do have both – we explain in your statement how you can use these once you reach retirement in section 1 under Look at your figures (continued).
How defined benefit pensions work
In a defined benefit (DB) pension scheme, how much pension you receive broadly depends on:
- your pensionable earnings,
- how long you've been a member of the Fund, and
- the rate your pension builds up.
This means you have more certainty around how much pension you'll receive from a DB scheme when you retire.
How defined contribution pensions work
Your defined contribution (DC) account builds up from:
- contributions from you,
- any contributions from Nestlé, and
- investment returns.
You can choose how to use your account to provide income at retirement. The income you get will depend on a number of things, including those listed above and the choices you make when you retire.
You can find out more about how your pension builds up under Your pension.
Got a specific question?
If you have a particular question, have a look at our question and answer section. You'll find links to this section throughout.
Want more detail about how we calculated the figures in your statement?
If you love to know the smaller details, have a look at our assumptions. Here we explain how we calculated parts of your statement and what assumptions we used for things like inflation, annuity rates and investment returns.
The best way to use your pension statement is in the following order:
1Look at your figuresLook at your figures to see how much you've built up so far and how much income you're on track to get from the Fund.
2Set your targetIf you're not sure how much income you'll need when you retire, turn to the 'Set your savings target' page in your statement to find out how you can set your retirement income target.
3Review your optionsIf you don't think you'll have enough, go to the 'Review your options' page to read about your options.
4The modeller and your online accountTo see the difference you could make to your income in retirement by making the changes available to you, read section four of your statement to find out how to log into your online account where you can use the modeller. You can also see how much making the changes available to you will cost you after tax and national insurance savings.
Follow these steps to see if you're on track for the income you'll need in retirement and to find out how you can build up more.
In this section of the website, we take you through each part of your statement step-by-step to help you get the most out of all of the information. Use the navigation at the top of the page to make your way through each of the four sections of your statement set out above.
To access the online forms and your personal information, you'll need to log in to Your account using your member number and password. You can find your member number in section 4 of your statement.
Haven't got an online account yet?
No problem, you'll need to sign up, but it doesn't take long.
To sign up you'll need your member number (that you can find in part 4).
If you've got an online account but have forgotten your password, you can reset your password online.
Your account and online forms
Log in to Your account to access your personal information and figures.
You'll be able to view your current Fund choices and the pension savings you've built up so far. You can also access the modeller and request changes to some of your choices online using our online forms.
And you can view your recent pension statements on Your account.
You can log in to Your account and request changes using the following forms:
DC Core Option Form
Use this form to switch to DC Core or change your DC Core contributions and the way they're invested. If you're a DB member – you can use this form to make changes to the savings that you make to DC Core once you've reached the pensionable earnings cap.
Additional Voluntary Contributions (AVCs) Form
Use this form to start making AVCs, stop making AVCs or to change the amount of AVCs you pay. You can also use this form to make one-off AVCs from your pay or your bonus.
Investment Choices Form
Use this form to change the way your DC Core savings are invested - this includes your main savings to DC Core, including the savings that you might make once you reach the pensionable earnings cap and how your additional voluntary contributions are invested If you want to, you can choose to invest each differently.
Target Retirement Age Change Form
Use this form to change your target retirement age.
A reminder about DB contributions
If you're a DB member, you’ll have received a newsletter which tells you that the cost of your contributions in DB Core and DB CorePlus will be increasing from 1 November 2021.
If you made any changes since receiving your newsletter, these have not been reflected in your figures.
For more up-to-date figures, please check the modeller at the end of November.
Don’t let a pension scammer ruin your retirement
Read more about how to protect yourself from scammers on our dedicated scams page where you’ll find:
- information on how to stay protected against scams,
- a link to, and information about, ScamSmart – the Financial Conduct Authority’s (FCA’s) dedicated scams website,
- details on The Pensions Regulator (TPR) and a link to their scams guide,
- a link to guidance from the FCA’s website, that tells you what you need to consider if you are thinking about transferring your defined benefit (DB) pension, and
- a letter from the FCA, TPR and Money and Pensions Service that tells you what you need to consider before transferring your pension.
Read more about how to protect yourself from scammers on our dedicated scams page.
How the Fund is run
Each year, you can find out more information about how the Fund is run from several documents that the Trustees produce. These documents include:
Statement of Investment Principles (SIP)
As part of the Fund’s report and accounts, the Trustees also need to show how the investment policies set out in the DB and DC Statement of Investment Principles have been implemented. These are known as ‘Implementation statements’. As with the SIPs, there are two Implementation statements – a DB implementation statement and a DC implementation statement.
DC Chair’s statement
The Chair of the Trustees must also confirm how the DC sections of the Fund meet certain governance standards in the DC Chair’s Statement. The aim of the DC Chair’s statement is to provide you with information about how the DC Start and DC Core sections of the Fund are managed, and the costs and charges that apply to your investments.