Frequently Asked Questions (FAQs)

 

What's the difference between TelefonicaPensions.com and TelefonicaRewards.com?

Simple, Telefónica Pensions contains all information about the Telefónica Pension Plan. Telefónica Rewards allows active employees to make changes to your contributions.

 

I'm confused with all the references to different sections of the Plan, which section am I in and who administers my Telefónica pension?

There are two main sections associated with the Telefónica Plan, first, our current Defined Contribution (DC/ Money Purchase) section administered by Standard Life and second, our former Defined Benefit (DB/ ex-final salary) section of the Plan administered by LCP. For more details please click here.

 

What is auto-enrolment and does it apply to me?

Auto-enrolment is the process which automatically enrols employees into their employer's workplace pension scheme without any active involvement. This is a legal requirement. For more information click here.

 

What happened to the AVC payments I made when I was a final salary member?

If you paid AVCs into the Plan when you were in the final salary section (pre 28 February 2013) they are still held with Standard Life in a separate pot to your current Defined Contribution (DC) benefits. When you put your final salary benefits into payment you can take your AVCs as part of these benefits.

 

When can I retire?

The minimum retirement age is currently 55. If you are an ex-final salary member, you have a protected minimum retirement age of 50. For more information on retirement ages and potentials restrictions on how you take your benefits please click here.

 

Am I saving enough?

This question is  hard to answer because it depends on individual circumstances such as the type of lifestyle you are looking for upon retirement. We would always suggest it's worth speaking with your financial advisor to make sure you're saving enough for your retirement. 

 

Can I save more in my pension?

Yes, you can put aside up to a maximum of 100% of your salary, as long as you can still meet your other financial commitments and your legislative requirements.

 

To find out more about the contribution structure and how to change your contributions, go to making contributions.

 

You should also give consideration to the annual allowancelifetime allowance and pension tax-relief restrictions if you are a high earner and thinking about making substantial contributions.

 

Can I change how my pension is invested?

Yes, you can. In addition to the default choice there are other lifestyle options and also selfstyle options where you can choose your own funds. It is worth researching all the choices before making any changes.

 

What happens if I leave the Company?

In terms of your pension, your membership of the Plan will end when you leave the employment of the Company. You will receive a letter from Standard Life giving you details, your pension savings and your options.

 

I’m retiring in a few months. What happens now?

You should have received a letter from the Plan Administrator that explains the decisions you need to make. There’s also more information in the Retirement section of our site.

 

How are my pension savings protected?

There are a number of measures in place that aim to keep your pension savings safe. The Trustee has reviewed the protection available across all the funds in the Plan and believes they all provide an appropriate level of security.

 

All funds are protected by the Financial Services Compensation Scheme (FSCS). For more information on the FSCS, please visit www.fscs.org.uk

 

What is included in the calculation for Pensionable Pay?

The definition depends on what section of the Plan you're in.

 

Sections 1  (Defined Contribution, DC only)

Plan Salary is defined as basic salary (adjusted to reflect any salary sacrifice arrangement and subject to the earnings cap of £166,200 for the 2019/20 tax year). Therefore overtime and other allowances would not fall within the definition.

 

Section 1A (Defined Benefit, DB, ex-final salary member)

Since 1 March 2013, Plan Salary is defined as your basic salary including London weighting and any other emoluments as notified to you by Telefónica as being pensionable. The Pension Supplement is specifically excluded. For some members Plan Salary, is subject to the earnings cap of £166,200 for the 2019/20 tax year. This also mirrors the definition of Plan Salary in the old DB sections.

 

What does the 'earnings cap mean'?

The Earnings Cap limits the amount of Plan Salary on which pension contributions are paid and on which pension benefits are calculated.

The earnings cap for the 2019/20 tax year is £166,200.

 

Am I affected by the recent Court ruling on Guaranteed Minimum Pensions (GMP)?

GMP is relevant only for DB section Plan members who were in service between 17 May 1990 and 5 April 1997. 

 

In October 2018 the High Court ruled that inequalities in how GMPs have been calculated must be addressed by all UK pension schemes. As a result of this ruling, the benefits for some members of the Plan may require an upwards adjustment. No Plan pension will be reduced as a result of this exercise.

 

There is however still considerable uncertainty about how pension schemes should in practice address this inequality. This situation is not unique to members of the Plan; the High Court judgement is expected to all pension arrangements across the UK which contain GMPs.

 

Should it be established at some point in the future that your benefits in the Plan are due an adjustment, you will be contacted to explain what options you have in relation to this.

 

If you have any questions about your GMP benefits in the Plan, My HR can be contacted on 0800 731 2638 or via email at MyHRUK@O2.com.  

 

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