A PIE offer gives you the option of exchanging future annual increases on pension earned before 6 April 1997, which will then no longer increase, for a permanent uplift to your pension. Your pension is typically made up of different parts and each part increases at a specific rate, depending on when it was earned and the Scheme Rules in force at that time. Only certain parts are eligible to be included in your PIE offer so any part not eligible would continue to increase annually in line with the Scheme Rules.
The Company is providing this PIE offer in line with the requirements of the pensions industry Code of Good Practice for these types of exercises. For more information on the Code of Good Practice, please visit www.thepensionsregulator.gov.uk/en/document-library/regulatory-guidance/incentive-exercises.
Why is the Company making this PIE offer available to me?
The Company wants to give you, and other eligible pensioner members, the option of more flexibility in how you receive your pension, and a PIE is designed to provide a way of doing this. In addition, the Company is keen to simplify its pension arrangements, to better manage the risks involved in managing the Scheme and to achieve more certainty over future costs.
Why is there a time limit to accept the PIE offer?
The assumptions used to calculate the figures detailed in your PIE offer will change over time. This means the offer cannot be made available indefinitely. As such, your PIE offer is only available until the date specified on your Personal PIE Statement that was posted, to the address you previously provided, in August 2021.
I have never heard of a PIE offer; are other companies doing this?
Yes, other companies such as BT, ITV and Boots have made a PIE offer available to their pensioners in recent years. PIE offers are made by trustees and companies because they can benefit some pensioners, the pension scheme and the employer.
If I decide not to accept the PIE offer now, will it be made available again in the future?
There are no current plans to make a PIE offer available in the future to members who are receiving the offer now.
What should I do if I do not understand all of the information about the PIE offer?
Please call Premier who can answer your questions and provide you with personal financial advice (or guidance, if you live outside of the UK). A PIE offer can be complex, and it is likely that you will have questions. Premier will help you understand the offer, and will not rush or pressure you to make a decision.
If you prefer, Premier can speak to a friend or family member acting on your behalf as long as you provide your consent.
The financial advice is provided at no cost to you, and the fee paid to Premier by the Company for undertaking this role is not affected by the decision you make or how many pensioners accept the PIE offer.
I have more than one period of service in the Scheme, how does this affect the PIE offer available to me?
Each PIE offer is only for one period of service. If you have more than one period of service in the Scheme, you may be given a separate offer for each period of service and you can treat each period separately. In this case, you would receive a separate information pack for each PIE offer for which you are eligible. However, because only certain parts of a pension are eligible for the offer, pensioners may not receive an offer for each period of service.
Do I have to accept the PIE offer?
No. The PIE offer will appeal to some pensioners but not to others. If you do not want to accept the offer you do not need to take any further action. If we do not receive your PIE Acceptance Form by the deadline (30 November 2021), your pension will continue to be paid and increase each year in line with the Scheme Rules.
How do I accept the PIE offer?
First you need to review all the information that was posted, to the address you previously provided, in August 2021 and take financial advice (or guidance, if living outside of the UK) by contacting Premier. Premier will talk you through your PIE offer and answer any questions you have.
Premier will then send you a letter with a summary of the key points you discussed and a recommendation to accept or decline the offer, as well as a PIE Acceptance Form. If you want to accept the PIE offer, you will need to complete this form and return it to Premier by the deadline (30 November 2021).
You can also speak with your own professional financial adviser, but you will be responsible for any costs. Even if you speak with your own financial adviser, you will need to speak to Premier to get hold of a copy of the PIE Acceptance Form and return it to Premier.
If I accept the PIE offer, can I change my mind later?
There is a 14-day cooling-off period from the date Premier receives your completed PIE Acceptance Form, during which you can change your mind and withdraw your acceptance. After the 14-day cooling-off period is over, if you have accepted the PIE offer, you can no longer change your mind and your change to a higher pension will be permanent.
If you do not receive an acknowledgement of receipt of your completed PIE Acceptance Form within 14 days of sending it, please contact Premier to confirm that they have received it.
Why am I being offered financial advice?
One of the principles of the pension industry’s voluntary Code of Good Practice for these types of offers is that impartial advice (or guidance, if living outside of the UK) from an independent professional financial adviser should be available to anyone receiving a PIE offer, at no cost to the member. The Company is making the advice (or guidance) available in compliance with the Code of Good Practice because it is important that pensioners are able to make an informed decision about their retirement benefits.
When do I need to speak to a financial adviser?
The process of advice from start to finish can take some time as the adviser will need to look at your personal circumstances, discuss these with you and then make a recommendation. You will then need to make your decision, based on this advice, and complete and return the PIE Acceptance Form by the deadline (30 November 2021) if your choice is to accept the offer. We recommend that you contact Premier to arrange financial advice as soon as possible to make sure you have enough time to consider your options.
What should I do if I have a concern about the PIE offer?
If you have a concern relating to your PIE offer, you should first contact the Scheme Administrator using the details below. They can provide you with the details as to where you should direct your concern, depending on the circumstances.
In writing:
DDT/CSC/AL
Westgate House
52 Westgate
Chichester
PO19 3HF
UK
By email: DXC.Pensions.Projects@mercer.com
