WELCOME
Welcome to the Trustee’s newsletter for 2020. We hope it helps you better understand how the Rolls-Royce Retirement Savings Trust (‘the Trust’) works and that it keeps you informed on the latest developments.
As you can imagine, this year has been extremely busy, with the priority during the pandemic being to maintain ‘business as usual’ operations, for both our Trustee Board and our administrator, Aviva. Our approach has been relatively successful so far, but in case you missed some of the original announcements posted on the website about the pandemic, here are the links again:
Rolls-Royce Pensions Covid-19 announcement
Aviva Covid-19 announcement
WHO MANAGES THE TRUST
The Trust is managed by a corporate Trustee company, called Rolls-Royce Retirement Savings Trust Limited, whose Board of Trustee Directors is assisted by a group of professional advisers.
Read more
The Trustee runs the Trust in the interests of all its members and has responsibility for its governance and administration.
The Trustee Board is made up of three Company-Nominated and three Member-Nominated Trustee Directors, plus a Chair elected by the Company.
During the year, Gordon Frew (a Member-Nominated Director) and Alan Partridge (a Company-Nominated Director) resigned from the Trustee Board. Fiona Brown, our Group Pensions Director, has taken Alan’s place on the Board for now, and we have started the search for a new Member-Nominated Director to replace Gordon – see the next item in this newsletter if you are interested in applying for this important role. We thank Gordon and Alan for their respective contributions in the running of the Trust and wish them both well for the future.
The current composition of the Trustee Board is as follows:
Company-Nominated Trustee Directors
Ian Farnsworth (Chair) – Pensions Consultant, Rolls-Royce plc, Derby
Teresa Waine – Internal Audit Manager, Rolls-Royce plc, Derby
Rebecca Hodgson – Senior People Partner, Rolls-Royce plc, Derby
Fiona Brown* – Group Pensions Director, Rolls-Royce plc, Derby
*on a temporary basis
Member-Nominated Trustee Directors
Matthew Hill – Chief of Strategic Patents – AeroPatent Attorney, Rolls-Royce plc, Derby
Mark Porter – Chair of UK Council/Works Convenor, Rolls-Royce plc, Barnoldswick
A vacancy exists for a Member-Nominated Director – please see the next item in this newsletter for more information.
Professionals engaged by the Trust
Adviser – Rolls-Royce plc: Pensions Department
Investment Consultant – Mercer
Legal Advisers – Gowling WLG (UK) Ltd
Investment Managers – Aviva
Administrators – Aviva
Auditors – KPMG LLP
Life Assurance Providers – Met Life and Aviva
Secretary to the Trustee – Richard Hill, Pensions Specialist, Rolls-Royce plc, Derby
The Trustee Directors monitor and review the performance of the administration team and the team is also audited externally by KPMG LLP, as part of its annual audit, and internally as part of Rolls-Royce plc’s business assurance activities.
Formal documents
If you want to see any of the Trust’s formal documents, these are available on request.
COULD YOU HELP RUN THE TRUST
We’re looking for a new Member-Nominated Trustee Director to join the Trustee Board and help run the Trust. Could it be you?
Read moreDue to the recent departure of Gordon Frew, there is now a vacancy for an active member of the Main or Top-Up Sections to join the Trustee Board as a Member-Nominated Trustee Director.
Trustee Directors generally serve a four-year term and at the end of that term can put themselves up for re-election alongside other contributing members.
To carry out the role effectively, Trustee Directors need to be aware of pensions legislation, trust law and general good practice. The Pensions Regulator has published a Defined Contribution (DC) code of practice that sets out key areas of focus which help Trustee Directors meet their legal obligations whilst also ensuring that the Trust is well run and more likely to deliver good member outcomes.
The DC code sets out the standards the Regulator expects the Trustee Directors to meet when complying with the law. Each of the code’s six sections are supported by a guide that sets out practical guidance on how to meet the standards; these standards are reviewed annually to ensure ongoing compliance and to identify any areas that require reviewing, for example, where there has been new guidance or legislation published. This is supplemented with the Trustee toolkit, which is an online learning programme from the Pensions Regulator and which all of the Trustee Directors must complete within six months of being appointed.
The Trustee Directors meet at least four times each year (sometimes more if required) to monitor the running of the Trust alongside their advisers and take action, as required. The Trust is also audited both internally and externally on an annual basis; these audits cover the general running and management of the Trust, including the role of the administrators and appointed advisers.
You can also find more information about the role of a Trustee Director and what is expected of you by accessing the information on the Pensions Regulator’s website.
If you think you may be interested in applying for this important role, please email the Secretary to the Trustee and request an application pack that provides full details of how to apply. Please note, if we receive more than one application, the appointment will be by selection panel. The closing date for applications is 30 November 2020.
PAID-FOR ADVICE
If you’re an active member who is leaving the Company and aged 55 or over, you’re entitled to personal retirement advice by WPS Advisory, funded by the Company.
More information
FEEDBACK WANTED
We hope you like the new format of this year’s report. Send your feedback to:
[email protected]ARE YOU GETTING VALUE FROM THE TRUST?
Each year, the Trustee Board has to produce a Chair’s Statement that summarises the Trust’s arrangements and explains how it provides value to members.
Read moreIn brief, this year’s Chair’s Statement:
- Describes the robust governance around the Trust’s investment fund options and our thinking behind the structure of the default investment options, the overall fund range and a summary of the recent investment changes.
- Describes how the Trustee monitors and reviews the scheme administration services and ensures that core financial transactions are processed efficiently.
- Confirms the charges and transaction costs for the range of funds available for you to choose from, including confirmation of the forthcoming agreed reduction in the Annual Management Charge (AMC) and a current illustrative example of the cumulative effect over time of these charges on your retirement income.
- Confirms our view that the Trust continues to provide good value – both in those areas where you meet some or all of the costs (through the AMC) and also where the related costs are met solely by Rolls-Royce (e.g. governance).
- Confirms the process by which the Trustee Directors maintain appropriate levels of pensions knowledge and understanding and how they review their effectiveness.
The latest full Chair’s Statement is available to view within the Trustee’s formal Report and Accounts, which are published on a separate Aviva website for your information: vfm.aviva.co.uk/rolls-royce
INVESTMENT SWINGS AND ROUNDABOUTS
Due to Covid-19, stock markets this year have been and continue to be volatile. The Trustee recently issued a communication to reiterate to active Trust members the long-term nature of retirement savings and address some of the concerns members may have. We would encourage members to read this update.
LOWERING THE COST OF SAVING
Each year, the Trustee Board has to produce a Chair’s Statement that summarises the Trust’s arrangements and explains how it provides value to members.
MYAVIVA – THE NEW WAY TO ACCESS YOUR RETIREMENT SAVINGS
The best way to keep up to date with your retirement savings account is to register for Aviva’s online services – which you can now access on the go or at home using the MyAviva app.
Read moreAs you may know, you currently have access to your Trust account through Aviva’s My Money website, which can be accessed from avivamymoney.co.uk/Login
However, with the recent launch of MyAviva, you can now register for Aviva’s updated platform, which allows access to your Trust account and other useful tools from a phone or tablet.
If you have more than one account, you will now also be able to access all of these from a single login.
MyAviva gives you quick and easy access to your retirement savings, so that you can:
- Find out your current fund value at any time
- Get into the habit of regularly checking how your retirement savings are doing
- Use the online tools to see if you’re on the right track for the retirement you want
- Switch investment funds or amend your nominated beneficiaries
You can also download the MyAviva app to give you easy access anywhere. Mobile data charges may apply.
The best way to register for the new MyAviva website is to simply visit aviva.co.uk/worksite-myaviva and make sure you have your membership number with you.
Problems logging in?
If you have any problems, you can contact Aviva on 0800 015 6034. Lines are open Monday to Friday 9am – 5pm, and the call is free of charge from UK mobiles and landlines. Calls may be recorded and/or monitored.
Other information
You can find out more about the Trust on the Aviva RRRST microsite – workplace.aviva.co.uk/rollsroyceretirementsavingstrust/ – and the Money Purchase Section’s landing page of the Rolls-Royce Pension Member website – rolls-roycepensions.com/SavingsTrust
FLEXIBLE CONTRIBUTIONS
From 1 May 2020, the new flexible contribution structure went live for most active members of the Main Section, although transitional arrangements may still apply for some people.
Read moreMain Section
If you’re in the Main Section (excluding Top-Up and AVCs), you now have full flexibility over the ‘core’ employee contribution you pay into the Trust, with your employer paying double what you decide to pay (up to a cap of 12%).
A transitional period still applies for some members, particularly those who were hired after 1 May 2018 and are yet to complete three years’ service.
Core design
|
|
You pay | Company pays | Total investment |
|---|---|---|---|
| Minimum | 3% | 6% | 9% |
|
|
4% | 8% | 12% |
|
|
5% | 10% | 15% |
| Maximum | 6% | 12% | 18% |
Top-Up Section
For members of the Top-Up Section, there is no change to the contribution structure. This remains as a 5% employee and 10% employer contribution.
Paying Additional Voluntary Contributions (AVCs)
For members of either the Main Section of the Trust or the Rolls-Royce UK Pension Fund (the Company’s ‘Final Salary’ pension arrangement), it is possible to provide extra benefits at retirement by making additional contributions to the Trust. These represent your own voluntary contributions and are not matched by the Company.
Changing your ‘core’ contributions or paying AVCs
The Company’s TotalReward Portal is where you’ll need to go if you want to increase how much you pay into the Trust, either through a change in your ‘core’ contribution or AVCs. Just like your regular contributions, you’ll benefit from tax relief on these additional savings. Any change that you make on the portal will be actioned for the next available payroll run, providing the change is made before payroll cut-off.
To access the TotalReward Portal, look for the launch email or visit rollsroyce.com/totalreward and follow the links to the retirement page.
THE MARK OF QUALITY
The Trustee is pleased to announce that the Rolls-Royce Retirement Savings Trust has just been awarded the prestigious Pension Quality Mark – a standard that recognises the very best defined contribution (DC) schemes.
Read moreThe Pension Quality Mark (PQM) is an independent quality standard awarded by the Pensions & Lifetime Savings Association. It recognises employers who help their staff to save for their retirement by providing a good quality DC retirement savings scheme. Schemes are judged on, among other things, their contribution rates, investment options, governance and member communications. Further details will be provided to Trust members in due course.
KEEP YOUR PENSION SAFE
The number of reported cases of pension fraud has more than doubled during the pandemic, as scammers capitalise on the savers’ fears. Stay alert and protect your pension from scammers.
Read more
FACTS AND FIGURES
We’ve pulled together a summary of the Trust’s latest report and financial statements, but you can see the full document here.
Read moreThe Trust’s annual accounts are audited by KPMG LLP, the independent auditor. The following information is taken from the Trust’s accounts for the year ended 5 April 2020.
OTHER INFORMATION
There is lots of information available online to help you understand your benefits in the Trust, including a new Money Purchase landing page on the Rolls-Royce Pension Member website.
Read moreThe new Money Purchase landing page has a host of useful general information on the Trust, including interactive member and investment guides, as well as a link to the My Money website, which is still available alongside MyAviva.
The Money Purchase landing page can be accessed here:
rolls-roycepensions.com/SavingsTrust
The Trust also has various online documents available for members, which you can access by registering for the Aviva online services:
- The Member Guide provides useful information on the benefits, including details of your life cover and your retirement options.
- The Investment Guide is an important document that tells you more about your investment choices and explains the level of risk associated with each of your fund choices.
Formal documents
If you want to see any of the Trust’s formal documents, these are available on request.
Internal Dispute Resolution Procedure
The Trustee Directors have an Internal Dispute Resolution Procedure available to members. This procedure is in line with statutory requirements. In the event of a member wishing to make a complaint, the first point of contact for all disputes is:
The Secretary to the Trustee
Rolls-Royce Retirement Savings Trust
PO Box 31
Derby
DE24 8BJ
Any complaints must be sent in writing.
KEEP IN TOUCH
Has Aviva got your correct contact details? And is your nomination form up to date? It’s important to keep your details up to date so that we can contact you about your benefits in the Trust.
