Fidante Benefits Package

Benefits Guide

1

Contents

Page

Your Health and Wellbeing Private Medical Insurance (PMI) Employee Assistance Programme

4 8

Your Protection Group Life Plan Group Income Protection

10 13

Your Retirement Workplace Pension Plan Salary (and Bonus) Exchange Programme Support with the Lifetime Allowance and Tapered Annual Allowance Fidante Personal Contribution Waiver Employee Forms

16 21 29 36 39

2

This Guide is intended to provide a basic overview of each benefit and aims to answer some of the most commonly asked questions. It does not contain in-depth technical information for each benefit. If you require further information on any of the benefits, the Guide directs you accordingly.

The Guide has been prepared by Fidante and our Benefit Advisers, James Murray Associates (JMA). Contact details for JMA are shown below.

For Servicing: Angela Garcia angelag@jmurray.co.uk

For Advisory: Nick Young nyoung@jmurray.co.uk

David Keary davidk@jmurray.co.uk Contact No: 0208 6423680

Important Notes

When considering the information contained in this guide: - 1. The information is based on current UK Tax and UK Pensions legislation. HMRC can change this at any time in the future. 2. Whilst every effort has been made to ensure the accuracy of the information provided, it is for guidance only. It does not in itself confer any right or privilege and all benefits will be paid in accordance with Fidante’s policy. 3. Fidante reserve the right to change benefits at any time.

3

The Fidante Group Private Medical (PMI) Scheme

4

What is the PMI Scheme?

• The objective is to provide high quality medical treatment at comfortable private hospitals. The cover is available in the UK only. • For full benefit details of the Scheme please click here and refer to your Membership pack that will be provided by BUPA. • To check on available hospitals, please click here for the BUPA ‘finder’ tool and follow the instructions.

Who Provides the PMI?

BUPA is the current provider.

Can I include my family?

Yes, spouses, permanent partners (living at the same address as you) and/or children can be included. Children can remain covered until age 21 (if unmarried and living at the same address as you) – or age 24 if in full-time education. Proof of continued full-time education will be requested.

Is there any cost to me?

Fidante meet the full cost for members and family.

• A member excess of £150 currently applies (this excess level may increase in future). This applies per person, per year when eligible treatment is required. • HMRC treat PMI as a benefit in kind for income tax purposes. Tax is payable at your marginal rate on the premiums paid on your behalf. • In addition, it is important to note that all insurers (BUPA included) have treatment cost ‘maximums’ (often in the form of preferred consultants/specialists where they have pre -agreed to work within the treatment cost maximums). It may be possible to use an alternative consultant of your choosing – but where they charge more than the widely accepted cost maximums, the member will be charged the differential. Where this is not acceptable, the member will be offered an alternative consultant / specialist.

What is not covered by the Schemes?

All PMI plans impose certain standard exclusions that apply to everyone – these will be confirmed in your Membership Documents. All PMI providers impose exclusions on chronic conditions and it is important that members of staff are aware of this – please refer to your Membership Documents for full details.

Will Personal Exclusions apply to my Plan?

No. Fidante have selected the highest quality underwriting option known as “Medical History Disregarded” (MHD). This means that medical declarations are not required at outset and that no personal exclusions will be imposed. Consequently, it may be possible to receive treatment on existing conditions. This is an extremely important (and generous) feature of the Fidante scheme. However, please note that MHD terms only apply for members of staff (or new family additions) that apply within 30 days of becoming eligible to join. If you apply late, full medical underwriting may apply and personal exclusions may be imposed.

5

What if I have existing PMI?

In many circumstances, cancelling existing plans and joining the Fidante arrangement will make good sense. You will benefit from company paid premiums and your personal costs are likely to be much reduced. However, it is crucial to assess the value of any existing cover for you and your family before switching to the Fidante plan. The Fidante plan is a first-class arrangement but there may be individual circumstances where an existing plan is more valuable. In particular, if you or a member of your family has a recurring health condition that is covered by your existing private plan, it could make sense to maintain this arrangement. As explained, the Fidante plan benefits from Medical History Disregarded terms so existing health conditions may be covered for treatment. However, if you subsequently leave Fidante, you will potentially be asked to complete an application (including questions on medical history) in order to continue the plan on an individual basis. At that point, additional personal exclusions may be imposed. In these circumstances, maintenance of an existing individual arrangement may make more sense. Please refer to our advisers (JMA) if you require any confidential assistance on this matter. Please note that Fidante will not contribute towards any individual PMI plans. In addition, no alternative form of compensation will be provided for members of staff that choose not to join the Fidante PMI plan. • Members become eligible for this benefit after the completion of a 3 month probation period. • Towards the end of the probation period, members will receive an invite email from JMA. • To participate in the arrangement, members will need to confirm instructions by email to JMA. This includes full names and dates of birth for any eligible family members. • Members will not be added to this scheme automatically – specific instructions need to be provided by email. Please note that if these instructions are received late, the valuable MHD terms may not apply. When can I join the PMI Scheme?

What happens if I leave service?

Coverage will stop immediately from the date of leaving service.

If you wish to continue coverage after leaving service, it is possible to implement a replacement private plan, payable at your own expense. It may be possible to avoid any medical underwriting or imposition of personal exclusions – but to qualify for these ‘continuation’ terms, members must directly contact BUPA before leaving service. The contact number is 0800 600500.

6

Member Action Required!

New members of Staff: 1. Look out for the invite email and reply at your earliest convenience with specific instructions.

Existing Members of Staff: 1. Please remember to add a new qualifying partner and/or children as soon as eligible (delays may result in medical underwriting and personal exclusions being imposed). 2. You can do this by emailing JMA – link below. 3. Please remember to remove ex-partners (in the event of a divorce) and children who are no longer eligible.

Who do I contact about claims?

It is absolutely crucial to follow the correct claims procedure. Details of the process can be found within the BUPA guide and contact numbers are shown on your Membership pack that will be provided.

If the correct process is not followed, it is unlikely that the claim will be covered.

Please note that all claims must be handled personally by you and/or other adult family members on your plan. Neither Fidante HR, nor JMA can handle claims on your behalf (the insurer is not able to discuss confidential medical information with any third party).

Who do I contact for further information?

For any claim related queries, you must contact BUPA direct (please see the notes above).

For any administration queries, or questions on the Plan, please contact the Corporate Team at JMA corporate@jmurray.co.uk Phone: 020 8642 3680

7

The Fidante Employee Assistance Programme

8

Who Provides this Plan?

The Plan is currently provided by Health Assured.

What is this Plan?

Everyone needs some additional support at times – especially when facing the most stressful situations (e.g. family matters, bereavement, legal problems, debts). This plan aims to provide the support that you may need in the form of confidential counselling, advice and guidance.

For further details, please click here.

To use the online guides and services, please enter: ▪ Username: GIP ▪ Password: EAP

Additional services such as the Digital GP Service and Second Medical Opinion Consultations are also available – for further details, please click here .

Is there any cost to me?

• Fidante meet the full cost of this Plan. • This is not treated as a benefit in kind for tax purposes.

Member Action Required!

• No action required – membership of this Plan is automatic.

Who do I contact for further information?

• Please click on the link above for full details and service provider contact details.

9

The Fidante Group Life Plan

10

Who provides the Group Life Plan?

The Plan is currently insured with Zurich.

What is this Plan?

This arrangement ensures that in the event of your death, whilst employed by Fidante, a lump sum equivalent to four times your basic annual salary will be paid to your beneficiaries. The cover expires at your State Pension Age, or on the date you leave service, if earlier.

Is there any cost to me?

• Fidante meet the full cost of the Plan. • This is not currently treated as a benefit in kind for tax purposes.

Are the benefits paid tax free?

• In most instances, yes. The plan is implemented under ‘Excepted’ Group Life rules (as opposed to the more common ‘Registered’ basis). • It is important to note that in the event of death, benefits from an Excepted Group Life scheme face no Pension related excess tax charges. • With an Excepted scheme, ‘periodic’ and ‘exit’ tax charges may be payable in the event of a claim. If one of these applies, the tax rate will be no more than 6% of the claim value (and often less). • If periodic or exit tax charges apply, the amount will be deducted from the claim value – before the balance is payable to chosen beneficiaries. • Potential Periodic and Exit tax charges are beyond the scope of a general Guide such as this. However, if any member wants further technical information, please contact JMA who will be able to provide further details and examples of when these may arise.

Can my Spouse/Permanent Partner be covered too?

No, only employees can be members of this Plan.

Who receives benefits if I die?

• Anyone that you wish to nominate. It is important to note that beneficiaries can only be: i. Individuals ii. Charities iii. Trusts set up for individuals • You can nominate more than one individual (you can allocate percentages if you have more than one beneficiary). • It is essential that you complete a Nomination form, so it is clear who benefits in the event of a claim. • If your circumstances change in the future (marriage, divorce, birth of a child etc) and you wish to change your beneficiaries, all you need to do is complete a new Nomination form.

What happens if I leave the company?

Your benefits will stop with no continuation options.

11

Will this Plan affect my private arrangements?

Not usually. Any existing family or mortgage protection arrangements can and probably should be maintained.

Member Action Required! New members of Staff:

• You will be added to the Plan automatically (there are normally no joining forms to complete). • Please complete and return a Nomination Form to Fidante HR – ( please click here for the Nomination Form page ). • Medical Underwriting - there may be a requirement for a medical questionnaire or other medical requirements. You will be notified if you are required to provide any medical information. Please note that you may not be fully covered until the medical underwriting process is complete. In the event of the insurer declining your application, you will be notified. In the event of the insurer increasing the standard rates of premium, Fidante reserves the right to restrict your cover. • Please remember to update your Nomination Form should your circumstances or requirements change (you should remember to review your decision every few years – and especially at the time of major life events). Updated Nominations should be returned to JMA. • Medical Underwriting - salary increases may result in standard underwriting limits being exceeded. In these circumstances, there may be a requirement for a medical questionnaire or other medical requirements. You will be notified if you are required to provide any medical information. Please note that you may not be fully covered for the salary related increase in benefits until the medical underwriting process is complete. In the event of the insurer declining your application, you will be notified. In the event of the insurer increasing the standard rates of premium, we reserve the right to restrict your cover. Existing Members of Staff:

Who do I contact for further information?

The Corporate Team at JMA corporate@jmurray.co.uk Phone : 020 8642 3680

12

The Fidante Group Income Protection Plan

13

Who provides the Group Income Protection Plan?

The Plan is currently insured with Zurich.

What is this Plan?

• The objective is to provide staff members with an income in the event of long-term absence from work due to illness or injury. • The level of Income Protection benefit will be 75% of your basic salary (excluding any bonuses, allowances or any other remuneration). • Should you need to claim, the income will be paid in the same way as your salary and will be subject to Income Tax and National Insurance. • The benefit will be payable after 26 weeks of continuous absence from work due to illness or injury. • Eligible claims will be paid until you return to work (or up to the expiry date of your State Pension Age). Claims stop immediately in the event of death.

Is there any cost to me?

• Fidante meet the full cost of the Plan. • This is not currently treated as a benefit in kind for tax purposes

Will this plan affect my private Income Protection plan (if I already have one)?

• Possibly. If you have private Income Protection (also known as Permanent Health Insurance or PHI) in place, there will be an overall maximum level of cover with your private insurer. • The potential income from the Fidante group scheme will count towards the maximum benefit level. Therefore, you may need to reduce or suspend any existing private protection. Please refer to your existing private insurer for guidance.

Can my spouse/permanent partner be covered too?

No – only employees can be members of this plan.

What happens if I leave service?

This cover will end on the day that you leave service with no continuation options.

14

Member Action Required! New members of Staff:

• You will be added to the Plan automatically (there are normally no joining forms to complete). • Medical Underwriting - there may be a requirement for a medical questionnaire or other medical requirements. You will be notified if you are required to provide any medical information. Please note that you may not be fully covered until the medical underwriting process is complete. In the event of the insurer declining your application, you will be notified. In the event of the insurer increasing the standard rates of premium, Fidante reserves the right to restrict your cover. Exclusions from cover may also apply.

Existing Members of Staff:

• Medical Underwriting - salary increases may result in standard underwriting limits being exceeded. In these circumstances, there may be a requirement for a medical questionnaire or other medical requirements. You will be notified if you are required to provide any medical information. Please note that you may not be fully covered for the salary related increase in benefits until the medical underwriting process is complete. In the event of the insurer declining your application, you will be notified. In the event of the insurer increasing the standard rates of premium, Fidante reserves the right to restrict your cover. Exclusions from cover may also apply.

Who do I contact for further information?

The Corporate Team at JMA corporate@jmurray.co.uk

Phone : 020 8642 3680

15

The Fidante Workplace Pension Plan The Fidante Workplace Pension Plan

16

Who provides the Workplace Pension Plan?

AEGON is the current provider.

What is this Plan?

It is a Personal Pension Plan. This is a long-term savings arrangement that allows you to build wealth in a highly efficient manner. The objective is to accumulate as large a fund as possible by the time you retire. When you reach retirement age (currently, the earliest age is 55 but this rises to age 57 from 2028), you have a wide range of options and flexibility in terms of how you withdraw benefits. Please note that although a Pension provider is fully involved, your Fidante Pension is entirely owned by you personally. You decide how the value is invested (although there is a default fund). You decide when benefits are withdrawn (currently, at any age from age 55 onwards, rising to 57 from 2028) and you decide how benefits are withdrawn. At Fidante, we believe that this is exactly how it should be – maximum member flexibility. Fidante’s ongoing involvement is restricted to paying a regular company contribution towards your Pension.

What are the contribution rates?

• Fidante Contribution – 8% of your Pensionable Salary* • Personal Contribution – 4% of your Pensionable Salary**

Pensionable Salary is defined as your full basic salary excluding any bonuses, commissions or any other agreed remuneration.

*The Fidante company contributions are subject to a cap of £833.33 per month (£10,000 per year).

** Fidante offer a highly tax efficient ‘Salary Exchange’ option for the payment of your personal contributions. Please refer to the next section (entitled ‘Fidante Salary Exchange and Bonus Exchange’).

Can I pay additional personal contributions?

Yes, it makes good sense to pay the maximum you can afford in excess of the minimum 4% rate. Contributions can be paid up to the HMRC maximum Annual Allowance. This is up to 100% of salary with a cap of £60,000 per year (company contributions from Fidante count towards this allowance). HMRC place further limits on how much you can pay in to your pension if your total annual earnings (from all sources) exceed £260,000. Please see the later Tapered Annual Allowance section if you think you may be affected.

17

What are the Tax Benefits?

There are three significant tax advantages: Tax Relief on Contributions

➢ Personal contributions attract full income tax relief at your marginal rate. ➢ If you participate in the Salary Exchange option, personal National Insurance savings will also be enjoyed. Tax Free Growth ➢ Any investment growth achieved within the Pension is tax free (excluding any local withholding taxes on any overseas assets).

Tax Free Cash Lump Sum at Retirement

➢ When you decide to withdraw benefits, 25% of the accumulated value can be withdrawn tax free (up to a maximum tax free lump sum of £268,275).

It is these tax ‘breaks’ that give Pensions compelling advantages over any other form of mainstream investment.

When will membership start?

If you are age 22 or over and earn more than £10,000 you will be automatically enrolled into the Pension Scheme on the 1 st of the month following your commencement of service.

If you are under the age of 22, you will be automatically enrolled on the 1 st of the month following your 22 nd birthday (although it is possible to voluntarily ‘opt - in’ beforehand).

What are the investment options – and how do I instruct fund switches?

• The ‘default’ investment option is the AEGON MI (medium risk) Workplace Savings fund. All contributions will be invested in this fund, unless you instruct otherwise. • There is a huge range of alternative options available with AEGON – this is a key advantage of the arrangement. You have access to more than 4,800 investments – other funds and individual shares. • For full details of the default fund (and the range of alternative options), please click here where you can search for all available funds. • If you wish to switch out of the default fund and choose your own investment funds, you will first of all need to register for full online access. You will then be able to submit your instructions online. Further details can be found here . • Alongside your Pension, the AEGON platform also enables you to hold and collectively manage personal investments such as Investment ISAs and General Investment Accounts. For more information please click the link above for the plan guide.

When can I withdraw benefits?

The normal retirement age for the plan is 65 but benefits can be taken at any time (without penalty) from age 55. This minimum retirement age changes to 57 from 2028.

18

What are the benefits at retirement?

The overall aim is to accumulate as large a pension fund as possible throughout your working lifetime. When you eventually retire, 25% of your accumulated fund value can be withdrawn as a tax free lump sum (up to a maximum tax free lump sum of £268,275). The remaining 75% is used to provide you with an income (which will be subject to income tax). Various income options are available to you – and you should seek advice to establish what is most suitable for your needs and circumstances.

Does membership affect my State Pension?

The State Pension is not affected by membership of the Fidante Pension Scheme. The plan benefits are payable in addition to the State Pension.

Can I ‘opt out’ of the Pension?

• Yes, although you will miss out on valuable Pension contributions from Fidante if you do. • Existing members of the Pension Plan will not receive an ‘opt out’ notice although it is possible to request to leave the Pension. However, any contributions previously paid must remain within your Pension (they cannot be refunded). • For new joiners, when you are first enrolled you will receive a statutory notice explaining your rights. You will be given a 30- day period in which to ‘opt out’ of the arrangement and receive a refund of any personal contribution already deducted from your pay. • In either scenario (if you opt out or subsequently leave the Pension Scheme), legislation requires Fidante to re-assess you broadly every three years and where applicable, to automatically re enrol you back into the Pension Scheme.

What happens in the event of death before retirement?

In the majority of cases, the full value of the AEGON pension fund will be payable to your beneficiaries as a tax-free lump sum. This is in addition to the Group Life Assurance benefits provided by Fidante. Members should complete a Death Benefit Nomination form relating to the Pension value (this is separate to the Group Life Nomination form).

What happens if I leave service?

It is important to remember that the plan belongs to you. In the event of leaving service, any of the following options could apply: • You can continue your plan in full or at a reduced contribution level. • You can stop all contributions – with the plan value remaining fully invested. • A transfer value can be paid to any other approved pension arrangement. • There are NO penalties for stopping contributions or for moving the plan to another arrangement in the future.

Can I switch the value of other existing Pensions to this Plan?

Yes - and it often makes good sense to consolidate pension arrangements. However, each existing plan should be carefully reviewed before making any final decisions. You should take advice before considering any pension transfer.

19

Member Action Required!

New members of Staff:

• If you think that you may be affected by the Tapered Annual Allowance (TAA), please ensure that you carefully read the later section. • The default option for personal contributions is the conventional method. In order to participate in the more efficient Salary Exchange programme, you need to apply. See the next section for full details and instructions. • Please complete and return a Nomination Form – this is attached here . You will need your AEGON policy number before being able to do so (this will be confirmed on the Plan documents that you will receive shortly after joining the Pension). • You should register for full online access, as soon as you are invited to do so by AEGON. You will be able to monitor Plan valuations, view contribution histories and possibly switch funds (if you wish to move away from the default fund). Please click here for details . • If you choose NOT to participate with Salary Exchange, you must remember to claim any higher or additional rate tax relief that you are due. This is normally achieved by entering your gross personal contributions on your tax return. Those who participate in Salary Exchange do not need to enter any details on their tax return as any higher rate relief is granted immediately. Existing Members of Staff: • If you think that you may be affected by the Tapered Annual Allowance (TAA), please ensure that you carefully read the later section. • Please remember to update your Nomination Form should your circumstances or requirements change (you should remember to review your decision every few years – and especially at the time of major life events). A new Nomination form is attached here . • If you haven’t already done so, you should register for online access. You will be able to monitor Plan valuations, view contribution histories and switch funds . Please click here for details . • If you choose NOT to participate with Salary Exchange, you must remember to claim any higher or additional rate tax relief that you are due. This is normally achieved by entering your gross personal contributions on your tax return. Those who participate in Salary Exchange do not need to enter any details on their tax return as any higher rate relief is granted immediately.

Who do I contact for further information?

The Corporate Team at JMA corporate@jmurray.co.uk Phone : 020 8642 3680

20

The Fidante Salary and Bonus Exchange Programme

21

Salary Exchange

Salary Exchange (sometimes known as Salary Sacrifice) is not a different Pension – it is simply a more tax efficient way to pay your personal contributions towards the Fidante Workplace Pension.

By paying your future Pension contributions using Salary Exchange, the value of those contributions will remain the same - but your monthly take home pay will increase.

What is Salary Exchange and how does it work? Salary Exchange is simply a different, more tax efficient way of paying personal pension contributions. Instead of paying your contributions from net salary (the conventional method), your salary is reduced by the amount of your gross pension contribution. This amount is then paid into your pension as an additional company contribution.

This results in the following benefits:

1. You pay less National Insurance personally and consequently, your monthly take home pay increases. 2. If you are a higher rate tax-payer, you will see immediate tax relief at the full rate (no requirement to separately claim back the additional relief owed).

Basic Rate Tax Payer Conventional contribution method (non-Salary Exchange)

As an example, under the conventional (non-salary Exchange) method, for an employee earning £40,000 a year who contributes 5% of their basic salary to their pension, this amounts to £2,000 a year. After basic rate tax relief is applied, the net annual cost to them is £1,600. In addition, they pay 8% in National Insurance (£160) on the £2,000 which cannot be reclaimed.

Using Salary Exchange

Taking the same basic rate tax payer, their gross salary is reduced by £2,000 (5% of basic salary). However, as the amount exchanged is no longer subject to income tax (20%) or National Insurance (8%), the net annual cost is £1,440 (giving the employee an extra £16 0 ‘in their pocket’ when compared to the conventional method of payment).

Higher Rate Tax Payer

Conventional contribution method (non-Salary Exchange)

For a higher rate taxpayer earning £100,000, assuming they also contribute 5% of their basic salary into the Pension, this amounts to £5,000. Initially they would make a net contribution of £4,000 and they would be entitled to a further £1,000 in tax relief (obtained through their Self-Assessment or direct letter to HMRC - no additional tax relief is provided unless it is positively claimed). In addition, they would pay 2% in National Insurance (£100) on the £5,000 which cannot be re-claimed.

Using Salary Exchange

Taking the same higher rate tax payer, their gross salary is reduced by £5,000 (5% of basic salary). As the amount exchanged is no longer subject to income tax (40%) or National Insurance (2%), the net cost is £2,900. When compared to the conventional method, this gives the employee an extra £1,100 ‘in their pocket’ if they have not previously been claiming higher rate tax relief, or £100 if they have.

22

The higher the level of contribution you choose to make using Salary Exchange, the greater the savings become.

Why does Fidante offer Salary Exchange?

Fidante is absolutely committed to offering employees a market leading pension scheme. Salary Exchange is an efficient way of pension contributions.

How can I calculate my own contributions and tax savings?

To help, a Salary Exchange calculator is provided along with this Guide.

Can I increase the regular contribution I pay using Salary Exchange?

Yes, and as the contributions you exchange are not subject to National Insurance, the more you contribute the more you save.

Do I have to pay my Pension Contributions using Salary Exchange?

No, although if you choose not to pay your contributions using Salary Exchange, you will miss out on valuable savings (and have the responsibility to reclaim higher rate tax relief if it applies to you).

Who is eligible to make Salary Exchange contributions?

You are eligible to make Salary Exchange contributions – as long as your post-exchange salary is greater than £22,308 (full-time equivalent). This is equivalent to £11.44 per hour, assuming a 37.5 hour week. This ensures that the National Minimum Wage levels are adhered to. In addition, there is absolutely no advantage in reducing actual pay below the Tax-Free Annual allowance (£12,570 in 2024/2025). If earnings do reduce below this level, zero tax relief may apply, and in these circumstances, it would be better to continue with the conventional contribution method.

How much can I contribute via Salary Exchange?

You can exchange as much as you wish, as long as the total Pension contributions are within HMRC limits and your remaining salary is above the £22,308 minimum requirement.

Can I exchange any future discretionary Bonus Payments too?

Yes – discretionary Bonus payments can also be Exchanged for Pension Contributions. Here, Fidante will generously increase the value of your contribution by a valuable 13.8%. More details will follow ahead of any future bonus payments.

What will be shown on my payslip as a result of making Salary Exchange contributions?

Your payslip will continue to show your full, pre-exchange Salary. It will also show the deduction for Salary Exchange, the reduced amount of tax and NI payable and your take home pay.

23

Will I still benefit from income tax relief on my pension contributions with Salary Exchange contributions?

Salary Exchange contributions are paid as employer contributions. You do not receive tax relief on employer contributions. However, you do not pay income tax on employer contributions either, so the result is the same.

What are the tax implications for higher-rate taxpayers?

With conventional Personal contributions, in order to obtain the full amount of higher-rate tax relief (the difference between the basic rate and higher-rate of tax) on your contributions, you are required to complete a tax return or to submit a claim direct to HMRC.

With Salary Exchange contributions, you are not required to do this as you will immediately receive the full amount of tax relief due via your payroll.

Please note that if your tax code has previously been adjusted to credit higher rate tax relief linked to conventional Pension contributions, you should contact HMRC to advise that personal contributions are to stop.

Will making payments using Salary Exchange represent a change to my terms and conditions?

Yes. This is because your contractual pay is reduced by an equivalent amount to the Pension Contributions you wish to exchange. You will not pay any personal contributions into the Pension Scheme. However, Fidante will provide you with a benefit of additional pension contributions into the Pension Scheme. You will not be liable for National Insurance or Income Tax on this benefit.

Will other salary related benefits be based on my reduced pay following Salary Exchange?

The benefits you receive as part of your package will be unaffected. However, the way they are calculated may change. Benefits which are non-pensionable such as Group Death in Service and discretionary bonuses will continue to be based on your pre-Salary Exchange pay. Your pre-Salary Exchange pay will also continue to be used to calculate any pay increases.

To avoid a ‘double counting’ effect, items which are pensionable such as maternity, paternity, and adoption leave will be based on your post Salary Exchange salary.

Will my State Pension benefits be reduced if I make Salary Exchange contributions?

Since April 2016 the State Pension has been calculated on a single, flat rate basis for all. Consequently, Salary Exchange should have no impact for anyone using this process.

24

Will other state benefits be reduced as a result of making Salary Exchange contributions?

As you will not be eligible to make Salary Exchange contributions if this would reduce your pay to less than £22,308, we do not believe there will be any negative impact on other state benefits.

In fact, as your earnings before tax and NI will be lower, you will be more likely to qualify for some state benefits and the value of your state benefits could actually increase.

What about maternity leave?

The calculation of maternity pay will be based on your reduced, post Salary Exchange pay. However, your Salary Exchange contributions will continue to be paid in full (at your pre-Maternity value) by Fidante throughout the period of paid maternity leave (unless you choose to stop participating in Salary Exchange before or during your maternity leave).

As my pay is reduced as a result of making Salary Exchange contributions, will this affect the amount of mortgage or loan I could receive?

Not normally but it depends on your lender. Reference letters provided by Fidante for mortgage or loan purposes will refer to your pay before any adjustments to reflect Salary Exchange contributions. Historically, most lenders have been happy with this.

Will paying Salary Exchange contributions affect my student loan repayments as they are based on my earnings?

Yes. The amount you are required to pay in student loans will be lower as it is based on your pay after the Salary Exchange contribution reduction. If you pay off your loan at a lower rate, you will end up paying it back over a longer period, so it may cost you slightly more in interest.

How often can I change my level of Salary Exchange contributions?

Normally, once a year. Salary Exchange reviews will take place each March thereafter during which time you will have a 3-week period to notify of any changes you wish to make. Any change instructed will be effective from the following month (April) onwards. You will also have the opportunity to make changes in the event of a ‘lifestyle change’ such as buying a new home, marriage/civil partnership, childbirth/adoption, divorce, promotion or significant changes to working hours.

Members wishing to start Salary Exchange for the very first time can do so at any time.

What happens to my contributions in the event of a salary increase/decrease?

The amount you contribute is based on a percentage of salary chosen by you. This percentage will not change unless you request this at the review point, or as a result of the lifestyle changes mentioned. Contributions will therefore increase or decrease automatically in line with your new salary.

25

What do I need to do to instruct Salary Exchange contributions?

Strict rules apply to Salary Exchange to protect both you and Fidante. Your Terms and Conditions of Employment will be revised to include a Salary Exchange arrangement.

The first stage is to confirm the percentage of your salary that you wish to Exchange to the Corporate Team at JMA (our Benefit Advisers) using corporate@jmurray.co.uk with a cc to Sarah Callaghan in Payroll using scallaghan@challenger.com.au . A personalised letter of instruction confirming the change will then be emailed to you. All you need to do is sign and return to corporate@jmurray.co.uk . The Salary Exchange will start from the next available month.

When can I start making contributions using Salary Exchange?

You can decide to switch to Salary Exchange from the first of any month - although it is important that the Agreement Letter is signed and dated before the process is implemented.

How long will Salary Exchange contributions be an option?

The intention is for Salary Exchange contributions to remain in place indefinitely. However, as company circumstances and legislation may change, we reserve the right to withdraw Salary Exchange contributions without notice or compensation and reintroduce employee contributions on the current basis. In this event, your earnings would be increased by the amount of the employee portion of your Salary Exchange contribution, which would then be deducted from your earnings and paid as a NET employee contribution.

What if I have any further questions?

Contact any of the following individuals at our advisers (JMA) who will provide you with the relevant guidance.

For Servicing: Corporate Team corporate@jmurray.co.uk For Advisory: Nick Young nyoung@jmurray.co.uk Contact No: 0208 6423680

26

Bonus Exchange

Bonus Exchange (sometimes known as Bonus Sacrifice) supports the Salary Exchange scheme. It is a highly tax efficient way to boost your retirement savings. Many of the previous notes on Salary Exchange equally apply.

What is Bonus Exchange and how does it work?

Bonus Exchange allows you to forgo some or all of your discretionary Bonus in return for an additional company Pension contribution.

When receiving a bonus in the conventional way through payroll, it is subject to income tax and National Insurance. What is paid into your bank is the net (after tax) amount.

As an example, a higher rate taxpayer receiving a £10,000 bonus will pay 40% in income tax and 2% in National Insurance on the value being paid. This will leave £5,800 as a net payment to their bank.

However, by exchanging part or all of a bonus for an additional employer Pension contribution, the amount being paid is not subject to income tax or personal National Insurance. Nor is Fidante subject to corporate National Insurance on the Pension contribution. Fidante have agreed to use the full saving (currently 13.8%) to uplift the Pension contribution payable as a result of Bonus Exchange.

Example

Using the example above, by exchanging the same £10,000 bonus for an additional Pension contribution, a total of £11,380 will be paid into the Pension arrangement. This equates to a 96% enhancement, compared to the net cash bonus.

What if I am not a higher rate taxpayer?

Keeping with the example above, a basic rate taxpayer would see the same £11,380 invested (equating to a 58% enhancement compared to the cash bonus) and an additional rate taxpayer (subject to 45% tax) would see a 96% difference.

Due to the way in which income tax thresholds are calculated, for those whose total income would otherwise fall between £100,000 and £125,140, the uplift in benefit can be as high as 199%.

How can I calculate my own contributions and savings?

A Bonus Exchange calculator is available on request. Please contact the Corporate Team at JMA (corporate@jmurray.co.uk ) Phone : 020 8642 3680 Please follow the simple instructions on the calculator to see the savings you can make.

How much can I contribute via Bonus Exchange?

You can exchange up to 100% of your Bonus. However, you must check that you are remaining within your overall annual Pension Contribution limits as set by HMRC. This Guide contains detailed information on the limits that apply

27

How long will Bonus Exchange be an option

The intention is for Bonus Exchange to remain in place indefinitely. However, Fidante reserves the right to withdraw the plan without notice or compensation. In addition, Fidante reserves the right to stop (or reduce) the level of corporate National Insurance re-investment at any time. Member Action Required! To participate in the Bonus Exchange plan, members must complete the Election Form (click here). This form must be signed and emailed to the Corporate Team at JMA (corporate@jmurray.co.uk) before the deadline as notified. Please note that Bonus Exchange contributions can only be paid to the Fidante Workplace Pension with AEGON.

What if I have any further questions?

Please contact the Corporate Team at JMA (corporate@jmurray.co.uk) Phone : 020 8642 3680

28

The following section of the Guide is only relevant to those genuinely affected by the Tapered Annual Allowance (TAA).

In brief, the TAA impacts any individual with total annual income (from all sources) that exceeds £260,000. Any member with total income around this level (or higher) should read on.

Anyone not currently affected by the TAA does not need to read on – the following detailed section does not apply to you .

29

Lifetime Allowance

Workplace Pension Plan

30

Overview

• Prior to 06 April 2023, the Lifetime Allowance (LTA) was the maximum pension value that could be generated by an individual before excess tax charges applied.

• The LTA reached a peak of £1.8m in 2011/2012 but subsequently reduced in 2012, 2014 and 2016. It stood at £1,073,100 in 2022/2023 before being abolished.

Fixed Protection

• Individuals may have previously applied for Fixed Protection in 2016, 2014 or 2012 or even Enhanced Protection, going much further back.

• These forms of protection meant that higher LTAs could be retained but in return, no further contributions could be paid after certain dates. This includes both personal and employer pension contributions. • From April 2023 onwards, only if an individual has an existing protection in place, can the Fidante LTA related ‘Benefit Allowance’ (BA) be requested. Please contact the Corporate Team at JMA if you think this affects you. corporate@jmurray.co.uk

31

Tapered Annual Allowance

Workplace Pension Plan

32

Overview

• Tapered Annual Allowance (TAA) is a complex piece of legislation, in effect from 06 April 2016, that only affects higher earners. • In most circumstances, individuals whose total taxable income (plus the value of company pension contributions) is less than £250,000 per year will not be affected. • Individuals whose total income is above £250,000 may be affected and should read on to find out more. • Individuals whose total income is more than £260,000 are impacted and should be fully aware of the changes. • The Annual Allowance (AA) is the maximum pension contribution that can be paid in a year (tax charges apply to any excess). • The standard AA is £60,000 * per tax year. This includes both personal and employer pension contributions. • For higher earners, the AA is reduced by £1 for every £2 of income over £260,000 in a tax year. • AA reduces to an absolute minimum of £10,000 per year. • If income is £360,000 or more, AA will be reduced by £50,000 to the £10,000 minimum (£100,000 ‘excess’ income divided by two).  It may be possible to pay more than this using the 3-year carry forward facility. Individuals potentially impacted should calculate their available carry forward allowance.

Test 1 – Adjusted Income

• Adjusted Income consists of an individual’s income from all sources before tax (salary, bonus, benefits in kind, profits from self-employment, rental income, investment income).

PLUS

• The value of any employer pension contributions.

If the Adjusted Income figure exceeds £260,000 in a tax year, the tapering of AA will apply.

If the Adjusted Income exceeds £360,000 the AA will be just £10,000.

Test 2 – Threshold Income

In a small number of situations, an individual that fails the Adjusted Income test may not see their AA reduced:

• Threshold Income uses the same starting point (income from all sources before tax). • Personal pension contributions can be deducted. • Employer pension contributions are not added.

If the Threshold Income is £200,000 or less for the tax year, the AA will not be reduced.

33

How to Value Employer Pension Contributions

• Money Purchase Pension arrangements are valued by the monetary amount that an employer contributes to an individual’s pension p lan over the course of a tax year. • Fidante’s Group Personal Pension plan that is administered by AEGON is an example of a Money purchase Pension arrangement.

AA Tax Charge

• If an individual exceeds their AA (and has zero carry forward allowance from previous years), the excess amount is included in their taxable income for the year. • In most instances, this will mean a 45% tax charge on the excess contribution over the AA. • As an example, if an individual who earns in excess of £360,000 receives an employer pension contribution of £20,000, this will be £10,000 above their tapered AA. The tax charge will be 45% on the £10,000 excess over the AA (£10,000 x 45% = £4,500 tax bill).

It may be possible to instruct the pension provider to pay the tax charge from the underlying pension fund (as opposed to paying the tax personally). However, this depends on meeting certain time restrictions and other conditions. Impacted individuals should refer to the pension provider or their personal advisers for further details.

Things to Consider

• Be aware of how much carry forward allowance exists and how long this will last (see following example). • Where possible, take advantage of the Threshold Income rules by paying personal pension contributions. • Consider reducing your personal pension contributions if this protects your employer contributions. • Undertake all sensible tax planning strategies to reduce taxable investment income. • Consider any alternative options, such as Fidante’s Personal Contribution Waiver program , that may be available.

34

Carry Forward – An Example

• Any unused pension AA can be carried forward from the previous three (3) years to help accommodate any excess contribution above the AA. • The current year’s AA must be used first (before any carry forward). Thereafter, any unused AA from the third year back is used, followed by the second and finally, the previous year. • The following simplified example explains more:

Total Pension Contributions Paid (Company and Personal)

Annual Allowance in Year

Spare Allowance for ‘Carry Forward’

Tax Year

Total Income

2016/2017

£100,000

£20,000

£40,000

£20,000

2017/2018

£110,000

£20,000

£40,000

£20,000

2018/2019

£120,000

£40,000

£40,000

£0

2019/2020

£360,000

£30,000

£10,000

£0

2020/2021

£360,000

£24,000

£4,000

£0

2021/2022

£360,000

£24,000

£4,000

£0

2022/2023

£360,000

£4,000

£4,000

£0

2023/2024

£360,000

£10,000

£10,000

£0

• Please note that between 2016/2017 and 2019/2020 inclusive, tapering started when incomes exceeded £150,000 - and ended at £210,000. The minimum tapered contribution was £10,000 in these years. • Between 2020/2021 and 2022/2023 inclusive, tapering started at £240,000 and ended at £312,000. The minimum tapered contribution was £4,000 in these years. • From 2023/2024 onwards, tapering starts at £260,000 and ends at £360,000. The minimum tapered contribution is £10,000.

1. The individual is a consistent higher earner. Full tapering has applied from 2019/2020. 2. The individual was working within the AA until 2019/2020 when the AA was exceeded by £20,000. However, there was £20,000 of unused AA from 2016/2017 (the third year back). This was carried forward into 2019/2020 to justify the excess contribution and legitimately avoid any AA tax charge. 3. In 2020/2021, the AA was again exceeded by £20,000. The spare AA from 2017/2018 was carried forward to justify the excess contribution. 4. In 2021/2022 the AA was again exceeded by £20,000. There is no remaining AA that can be carried forward. This meant that an AA tax charge of £9,000 was due (£20,000 x 45%). 5. From 2022/2023, contributions have been deliberately limited to the minimum level so not to exceed the AA.

Please note that you must have had a UK approved pension arrangement in place during the previous three (3) years to carry forward although there does not have to be any contributions made during these years.

35