Frequently Asked Questions

What do I pay? ASP and AVCs: You pay 6% of your pensionable pay as a basic contribution to the ASP. You will receive tax relief on your contributions which means that the difference to your take-home pay is less than 6%. You can also choose to pay additional voluntary contributions (AVCs) if you want to and these also receive tax relief. The company will match the first 6% of your AVCs pound for pound. ARP Membership of the ARP costs you nothing but you must be paying into the ASP to join. MPP section of ARP Membership of the MPP section of ARP costs you nothing as it is a non-contributory scheme (i.e. only the employer contributes to the plan). This pension Plan is now closed to new entrants. Automatic Enrolment Section The level of contributions made by both you and Mars to the Automatic Enrolment Section will gradually increase in line with legislation from 1 September 2013. The contribution levels are set out below:

Transferring Benefits

Can I transfer my pension from a previous employer into the scheme? ASP/Automatic Enrolment ASP It may be possible to transfer benefits from a previous employer’s pension scheme or a personal pension into the ASP. If you want us to look into this for you, please contact the pensions helpline. The ASP is contracted in to the state second pension (S2P). This means that you cannot transfer any contracted out pension benefits into it. ARP You cannot transfer benefits into the ARP. MPP/SPP No transfers into the Plan or SPP are permitted. VCS It may be possible to transfer pension pots into the VCS at the Trustee’s discretion. Back to top Can I transfer out my Mars pension benefits? MPP/VCS/SPP You may transfer your benefits to either a new employer’s scheme, an insurance company or to a Personal Pension. The Trustee will provide you with a statement of your cash equivalent transfer value, guaranteed for a limited period. The Trustee will ask you to complete a form of discharge before effecting the transfer or buy-out ASP/ARP/AVCs You can transfer your benefits to another registered pension arrangement. If it is possible to transfer your benefits in this way, the transfer value will be equal to the sum built up in the ASP and your AVCs allowing for investment returns plus the value of your ARP balance, that is your pay credits plus accrued ARP interest. We will issue you with a transfer quotation but the actual amount of the transfer value will depend on investment returns and ARP interest to the date of the transfer. For members with service before 6 April 2016, the receiving arrangement will be required to confirm that they are able to accept the contracted-out liability contained within your ARP benefit. Automatic Enrolment ASP You can transfer your benefits to another registered pension arrangement. If it is possible to transfer your benefits in this way, the transfer will be equal to the sum built up in the ASP allowing for investment returns. We will issue you with a transfer quotation but the actual amount of the transfer value will depend on investment returns. Back to top

Part Time Service

How does part time work affect my pension benefits? Members who move between part-time and full-time employment with Mars, or who are subject to flexible working hours under annualised hours contracts, will have their benefit under the Plan calculated as a proportion of the benefit that would have been payable had the member’s career been entirely full-time, but adjusted in proportion to hours worked, where these are less than the full-time contractual hours. e.g. A part time member working 18.75 hours per week (50% of a 37.5 hour week) is entitled to half the pension a full time member on the same salary would receive. Back to top

Financial Planning

Am I eligible to attend a Mars Benefits Education Programme Only active associates are eligible to attend Mars Benefits Education Programme courses. Benefits training is available to you at different stages of your career at Mars. The following courses are available:

If you wish to attend a Mars Benefits Education Programme course you can sign up through the Mars University – go to ‘Search’, then select ‘Advanced Search’ – in the table, enter your preferred site location from the Pick Location, ‘Mars Benefits Education Programme’ as Keyword and select ‘Instructor-Led’ in Delivery Type. Back to top Where can I go for financial advice on my investments? Mars Pension Trustees Limited is unable to provide financial advice, however if you wish to obtain financial advice to assist your financial planning please visit www.unbiased.co.uk. Back to top

Annual Allowance & Lifetime Allowance

What is the Annual Allowance? The Annual Allowance is the amount you can save into your pension annually and receive tax relief on. This allowance replaces all previous HM Revenue & Customs restrictions on contributions. The Annual Allowance is measured over a yearly 'Pension Input Period'. For all registered pension arrangements this is the tax year 6 April to 5 April of the following year. The Annual Allowance is currently £40,000.00 for most individuals. However, it can be less than £40,000.00 (and in some cases could be the minimum of £10,000.00 if your taxable income is above certain thresholds. If your pension savings exceed the Annual Allowance you will incur a tax charge at your marginal rate of income tax. You must declare all annual pension savings in your annual self-assessment tax return if you are over the relevant Annual Allowance. If you are an active MPP member, the value of your pension will be calculated by multiplying the growth in your pension each year (in excess of inflation as measured by CPI), by a factor of 16 plus any VCS or SPP contributions. Note : CPI is the measure of inflation the Government will use to work out the amount of pension growth that does not count towards the Annual Allowance. If you are an active ARP member, the value of your pension for the Annual Allowance is the increase in your ARP balance from 6 April to 5 April after allowing for inflation (as measured by CPI), plus any ASP and AVC contributions. If you are making additional contributions either to the ASP, SPP, VCS or AVC to obtain the value of these contributions, it is simply the total amount that is paid in by you and the company between 6 April and 5 April each year. If you are contributing to ASP, SPP, VCS or AVCs and you believe your annual pension savings will exceed the Annual Allowance, you could stop or reduce these to stay within the Allowance limit or you may incur a tax charge. Please note, you can carry forward any unused annual allowance for up to three years. Back to top What is the Lifetime Allowance? The lifetime allowance is the maximum value of benefits you can receive from all registered pension schemes and receive tax relief on. The lifetime allowance covers not just your Mars pension but also any previous and future pensions from other employers and private arrangements. The current lifetime allowance is £1 million (£1,000.000). You can earn pension benefits above the lifetime allowance but you will pay additional tax on the excess when these benefits start to be paid. Your pension benefits will be tested against the lifetime allowance when they first come into payment. Back to top

Opting Out

How do I opt out of the scheme? VCS/SPP You may cease contributing to the VCS/SPP at any time. ASP/ARP/AVCs You can opt out via the Plan status (Opt out of the Plan) link on the Change menu. You should think carefully before opting out because you will need to make your own pension arrangements. You cannot benefit from any Company contributions or build up any benefits in the ARP if you have opted out of the ASP. Automatic Enrolment ASP If you have been automatically enrolled into the Automatic Enrolment Section, you can opt out within one month of the date that you were automatically enrolled into it. If you opt-out within this month period, you will receive a full refund of your contributions (but not Mars' contributions). You will be treated as if you had never joined the Automatic Enrolment Section. You can opt out via the menu on ePA. You can opt out after the one month period at any time and the options in the section below will apply. If you decide to opt out, Mars will have to consider how the automatic enrolment legislation applied to you. Unless your circumstances have changed, you will be automatically enrolled again in the future. For more details, please contact Willis Towers Watson on 01737 273057. If you are automatically enrolled you will have the option to opt out again. If I opt out, can I rejoin the Mars pension plans at a later date? You will normally be able to rejoin the plans in the future, provided you are still an associate on a Company payroll. Your employer and the Trustee may set special conditions for you to meet. If you wish to rejoin, you must apply to the Trustee in writing. You can use the Joining Form for this. Please note that if you are a member of the Automatic Enrolment ASP, you are able to opt out and enrol into the ARP section. Back to top

Leaving Mars

• At any time from age 55 (or 50 as determined by the earliest retirement age in the Finance Act 2004 and Pensions Act 2004), you can use your ASP amount and AVCs to buy retirement benefits
• If you die before retiring, the sum built up in the ASP and your AVCs will provide benefits for your dependants

• The transfer value will be equal to the sum built up in the ASP and your AVCs allowing for the investment returns to the date of the transfer

1. transfer the invested value of yours and Mars' contributions to another registered pension plan: or
2. retain the invested value of yours and Mars' contributions in the ASP.

• Build up ARP interest until you retire
• Provide benefits for your dependants if you die before retiring

• The other arrangement must be contracted out
• The transfer value will be equal to your pay credits plus accrued ARP interest

Retirement

• Take a cash lump sum. This is currently tax free, subject to a check against HM Revenue & Customs limits.
• Draw a pension with the remaining benefit.

• Take a cash lump sum up to the HM Revenue & Customs limit. This is currently paid free of tax. The limits apply to the total cash you may receive from the ASP, AVCs and ARP.
• Use the remaining funds to buy a pension from an insurance company (an annuity) which may or may not:
  • Include increases in line with the Retail Prices Index (RPI)
  • Continue to be paid to another individual who was dependent on you in the event of your death (a joint life annuity)
  • Continue to be paid at the same rate for a period of time after your death (a guarantee period)
  • Use funds built up through the ASP and AVC to take a cash lump sum, paid in one go directly out of the chosen Mars Plan. This is called an Uncrystallised Funds Pension Lump Sums (‘UFPLS’). 25% of the fund is currently paid free of tax, with the remaining 75% taxed at your highest marginal rate of income tax. Under this option no further benefits would be payable to you once the payment has been made.
  • A cash sum of up to 25% of your ARP balance provided the amount is within the HM Revenue & Customs limit. This is currently paid free of tax.
  • A pension, which the Trustee provides using the remainder of your ARP balance. As the ARP was contracted out of the second state pension up until 5 April 2016, some or all of your ARP balance must buy certain types of benefit. The rules of the ARP set out the benefits, including pension for yourself and for your husband or wife after your death.
  • Use the funds in the ARP to purchase an annuity on the open market, with the consent of the Trustees.

  Death

  • A dependant's pension of 30% of your pensionable pay plus pensions for up to two children, each equal to half of the dependant's pension. Your pensionable pay in this case is worked out over the 52 weeks leading up to the date you die; or
  • The pension that your ARP balance can provide. This depends on the balance you have built up and on the age of your dependant.

  Contact us

  Who should I contact about my Mars Pension Plan benefits? If you require further information about your Mars Pension Plan benefits, please contact the Mars UK Pension Administration Team: Mars UK Pension Administration Team
  Willis Towers Watson
  PO Box 545
  Redhill
  RH1 1YX
  Tel: 01737 273057
  Email: mymarsfunds@willistowerswatson.com Back to top