Lanxess Pension Plan

The consultation relates to proposals to consolidate four existing pension arrangements into one future Master Trust arrangement. By bringing these arrangements together, we aim to provide a more consistent experience for all colleagues, with improved retirement support, digital tools and communications, while making it easier to manage and engage with your pension. 

An arrangement with Aegon  
An arrangement with Aviva  
An existing Master Trust arrangement  
A stakeholder arrangement already managed by L&G 

The pension provision is a defined contribution (DC) arrangement, with L&G Mastertrust. Both the current plan/s and the proposed new plan are DC pensions. The current plans operate under a contract based and trust-based arrangements with four different providers. Aim of this consultation is to bring all pension plans under one consistent arrangement.  

Note: Some members may also hold defined benefit (DB) pensions and are known as hybrid members. Proposed changes do not affect the DB portion of their pension. 

If you're unsure which pension arrangement, you're currently a member of, don't worry. We will contact everyone affected by the consultation directly and tell you which arrangement applies to you.  
You can also check your pension provider's online account or recent pension communications you received from them, which will show the name of your current pension plan. If you're still unsure, please contact the consultation team using the details provided and we'll be happy to help identify your pension arrangement. 

Yes. Even if your pension is already with L&G, you are still be affected by the consultation. This is because some members currently save into an L&G Stakeholder Pension arrangement, and the proposal is for these members to move into the new L&G Master Trust arrangement. While L&G would continue to be your pension provider, the type of pension arrangement would change. Your existing account details or login details will remain as they are. Based on the proposal, no action is required at this stage, and you will have the opportunity to provide feedback during the consultation period.

Your pension pot builds up based on contributions from both you and your employer, plus investment returns, less charges. These are also referred to as 'money purchase' pensions. At retirement, you can choose how to access your pension pot.

The new plan will use a Master Trust. This is a centralised pension arrangement used by multiple employers to provide pensions for their employees. It offers economies of scale and is governed by a professional independent board of trustees, who ensure the scheme is managed in the best interests of its members.

 Both a Group Personal Pension (GPP) and a Master Trust are workplace pension arrangements designed to help you save for retirement. They work in a very similar way, with contributions paid into your pension pot and invested for your future. The main difference is how the arrangement is governed. In a Master Trust, an independent trustee board is responsible for overseeing the pension plan and acting in members' interests, whereas a GPP is provided under a contract between you and the pension provider. Currently some pension plans are GPP and some are Master trust, aim of this consultation is to bring all these under one arrangement with L&G Mastertrust to provide consistent, strong governance and service for all colleagues. 

On your enrolment into the L&G Mastertrust, your retirement age would automatically be set at the default, which is 65. You will be able to amend your retirement age when you receive access to your online account.  L&G will provide more information how to do this in due course, if the proposals go ahead.

If you have selected a different age in the DC Section, then this would not carry across to the L&G Mastertrust.

No. You can take your retirement benefits at any point after age 55 which is currently the minimum age set by the Government (although you should be aware that this is increasing to age 57 from April 2028).

However, if you are invested in the default investment solution (the L&G TDFs), this may mean that the investments you hold are not aligned with your retirement choice. If you are planning to take your retirement benefits early you should always try to keep L&G up to date.

The L&G Mastertrust provides full flexibility in how you take your benefits.  You will have the option to take a tax-free lump sum – normally 25% of the value of your fund up to a limit of £268,275 – and can choose one (or a combination) of the following options for your remaining benefits.  Please note that all of these options will be subject to income tax.  

• Drawdown: a regular (or irregular) income from your account.  Your retirement savings will remain invested in the L&G Mastertrust and you will continue to benefit from the low TER.  There are no additional charges for accessing drawdown.
• Annuity: use your fund to purchase an annuity on the open market to provide you with a secure regular income for life.  Through the L&G Mastertrust you’ll have access to a whole of market annuity broking firm called Annuity Ready, who will help you secure the best deal.
• Lump Sum: a one-off lump sum payment covering the balance of your fund.  For example, if you elected to take your tax-free lump sum in full (25%), you can take a further 75% as a taxable lump sum.

Should this proposal go ahead, you will have access to an online retirement guidance tool to help you with your decisions as well as access to L&G’s specialist retirement helpdesk that can guide you through the process.  

If you are planning to access your retirement savings before the end of 2026 you should contact the current administrator of the DC Section, Fidelity.  You can call Fidelity on <TEL>.