The Scottish Life Federal-Mogul Stakeholder Plan


Helping you plan for the future

Whether you're thinking about joining your employer's
pension or are already a member, here you'll find useful
information about the benefits of joining and saving
for the future.

Find out about your plan

Want to join?

Can you afford to rely on the state pension when you stop working?

Find out more about your employer's group pension plan and how to join.

Already a member?

You've already taken the first steps to saving for a more secure future.

Make sure your plan stays on track. Log in and check your fund value.

Got a question?

Take a look at our frequently asked questions.

Why join?

Retirement should be a time for enjoying life to the full. People are living longer and expecting more from their retirement benefits. But many people don't realise that unless they start saving into a pension as soon as possible, they may not be as comfortable in the future as they would like. The state provides a basic pension, but this is just a safety net to ensure all pensioners have a minimum level of income. It's not usually enough for most people to live on.

Why is a pension a good way to save?

There are lots of ways you could save for your future, such as bank accounts, ISAs and investment in property. But pensions are the only method specifically designed for retirement savings, so they offer a number of additional benefits that other methods don't. These include:

  • tax relief on your contributions from the Government
  • a valuable employer contribution
  • the option of taking a tax-free cash sum when you take your benefits.

Tax rules depend on individual circumstances and may change in the future, but for now it helps your savings to grow faster. If you have any doubts about whether a pension is right for you, you should get financial advice.

Why choose Scottish Life?

Scottish Life has been helping people plan for their financial future since 1881. We are backed by the financial strength and stability that comes from being part of the Royal London Group, the UK's largest mutual life and pensions company. Our aim is to become the UK's largest customer-owned financial services organisation. We share Royal London's guiding principle - an unwavering commitment to 'financial sense'.

We call ourselves pension specialists. This means that we focus only on pensions which we like to think is just part of the reason why we are good at what we do. But you don't have to take our word for it - our long list of industry awards proves it. Everything we do, from our carefully selected investment choices to our excellent customer and online service, is designed to make saving for your future as easy as possible.

Joining is simple

Just fill in the Employee authorisation form and return it to your employer.

Flexible saving

Your regular monthly contributions will be made using SMART PAY. This is an agreement between you and Federal-Mogul where you voluntarily exchange part of your contractual pensionable earnings in return for regular contributions into your pension. You can find more information on SMART PAY and some examples of how it works in practice in the leaflet. To help you see how it will work for you, visit our online calculator.

To join the plan you have to contribute a minimum of 1% of your salary each month. Unless you decide otherwise your contribution level will be set at 3%. Federal-Mogul will double the contribution you make up to a maximum of 6%. They will also make a service related contribution as shown below.

Years of company service Service related contribution
Less than 5 0.0%
5 to 9 0.5%
10 to 14 1.0%
15 to 19 1.5%
20 to 24 2.0%
25 to 30 2.5%
30 or more 3.0%

So for example, if you want to contribute 3% and have 8 years' company service, Federal-Mogul will contribute 6% plus a service related contribution of 0.5% which will mean that the total amount invested in your plan is 9.5%. There are more examples in your Customer guide.

What are the benefits?

  • Tax relief - contributions will be taken from your salary before you receive it, so no tax or National Insurance Contributions will be due on that amount. Tax rules depend on individual circumstances and may change in the future, but for now it helps your savings to grow faster.
  • If you're a higher rate taxpayer you will automatically receive higher rate tax relief.
  • Flexibility - you can change the level of regular contributions once a year. You may also be able to change contributions if you experience a significant change in your lifestyle. Speak to your employer for more information.
  • Single contributions - these can be made at any time. They won't be made using salary exchange, instead they will benefit from tax relief at the basic rate of 20% at source. So if you have some spare cash you can pay some of it into your plan, so long as you don't exceed the annual allowance.
  • Transfer other pension plans - you can transfer previous benefits into this plan. As these have already received tax relief, the transfer payment won't receive any more. Transfers are complicated, so if you're thinking of making one you should talk to a financial adviser to make sure it would be in your best interests.

Why review your contributions?

You should review your contributions regularly to make sure you stay on track to get the retirement benefits you expect. If you can afford to save a little bit extra, why not put it into your plan? The more you save now, the better off you could be when you start taking your retirement benefits.

If you're unsure how much to contribute to your plan you should get financial advice.

Investing your savings

When deciding how to invest your retirement savings, you have two main options, you can stick with the plan investment choice or you can choose your own investments instead.

You should remember that investment returns are never guaranteed. This means that the value of your investment can go down as well as up and you might not get back the value of the original investment.

The Headline Lifestyle Investment Strategy

The Headline Lifestyle Investment Strategy is the Balanced Tracker Lifestyle Strategy (Pension & Cash). If you don't want to pick your own investments, your retirement savings will be invested here. This strategy is designed for people who prefer to leave the investment decisions to the experts. A Lifestyle Strategy will reduce the risk to your savings by automatically moving them from higher to lower risk investments the closer you get to retirement. You can get more information on the Headline Lifestyle Investment Strategy in your Customer guide.

Making your own investment decisions

You don't have to keep the plan investment choice - you can choose your own investments from our carefully selected range. Here you'll find a summary of the investment options available - there's more detailed information in the Pension investment options guide..

Lifestyle Strategies

The closer you get to taking your retirement benefits the more likely it is that you'll want to reduce the risk to your savings. Our range of Lifestyle Strategies can help with this. They switch your investments from higher to lower risk portfolios and are designed to suit different attitudes to risk. If you're not sure, you can get an idea of what your attitude to risk is by using our risk profiler.

Governed Portfolios

Our Governed Portfolios allow you to invest in a spread of equities, bonds and property while taking into account the length of time you have to save as well as the amount of risk you are prepared to take. If you're not sure, you can get an idea of what your attitude to risk is by using our risk profiler.

Funds

We offer a carefully selected range of funds to choose from including:

  • in-house funds managed by our investment division, Royal London Asset Management
  • funds managed by some of the world's leading investment companies.

Staying on top of your investments

Good investment decisions aren't just about selecting an appropriate option when you join. It's important that you monitor the performance of your investments regularly to make sure they remain suitable. And we won't charge you if you decide to change your investments.

You'll get a statement each year which shows how your investments are performing. And you can get information on fund prices and performance online too.

Taking your benefits

The retirement savings you've built up will be used to provide you with a regular income. The retirement age for the plan is 65, however you can start taking your income anytime from age 55, even if you're still working. And you can choose from a range of options to help you tailor your retirement benefits to your needs.

Your retirement options

  • You can normally take up to 25% of your retirement savings as a tax-free cash sum.
  • The rest of your retirement savings (or all of them if you haven't chosen the tax-free cash sum option) is used to provide you with a regular income. There are various options available which allow you to tailor your income, such as yearly increases, guarantee periods and spouse's pension.
  • Just because you've saved with Scottish Life doesn't mean you have to take your income from us. You're free to shop around and compare other companies' rates to get the best deal. There's no penalty if you choose this option.

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