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What else you need to know
Taxation of contributions and benefits
Contributions
You can get tax relief on your pension contributions to the RWE Group. Unless you participate in your Employer’s salary exchange arrangement, contributions are deducted directly from the salary you receive from your Employer. You automatically get tax relief on your contributions in the calculation of tax on your salary. The amount of tax relief you get depends among other things on the income tax rate you pay. For more information, please visit Your Hub.
Benefits
HMRC imposes some restrictions on the tax advantages to be gained from saving in a registered pension scheme like the RWE Group, particularly on the level of benefits you can build up. You can build up benefits in excess of these restrictions however you will not receive favourable tax treatment on the excess. For more information please visit the government’s web pages on tax on your private pension and/or the pension annual allowance calculator.
State pension/contracting-out
From 6th April 2016, a new state pension was introduced by the government. The new single-tier state pension replaced the old state pension, which consisted of the basic state pension and the state second pension. If you reached your state pension age before 6th April 2016 you receive a basic state pension in addition to your benefits from the RWE Group. If you reached or will reach your state pension age on or after 6th April 2016, you will receive the new state pension.
The RWE Group was contracted-out of the state second pension meaning it provided benefits in place of the state second pension. Until 5th April 1997, the RWE Group promised to provide at least a minimum pension to each member. This is known as the Guaranteed Minimum Pension or GMP. From 6th April 1997 to 5th April 2016 the RWE Group promised to provide benefits at least equal to the reference scheme test, which was a statutory standard set by the government.
As the RWE Group was contracted-out, members did not earn the state second pension while a Contributing Member of the RWE Group. As a result of being contracted-out of the state second pension members and their Employers paid a lower rate of National Insurance contributions (NICs).
Contracting-out was abolished from 6th April 2016 when the new state pension was introduced and Contributing Members must now pay the full rate of NICs. Please see the government’s website for more information on the state pension, your state pension age and contracting-out.
Life events and changing circumstances
Your personal circumstances may change over the years. If you decide to marry, divorce, remarry or if you have children, you should contact the Administrator of RWE Group, and provide them with the appropriate documents (e.g. marriage certificate, decree absolute, birth certificate) to update their records. If you move home, make sure you notify the Administrator of RWE Group, WTW, of your change of address.
Who will receive any lump sum payable on my death? – Tell us who matters
For most members of the Main Section, the Group Trustees decide who should receive any lump sum payable from the Main Section on their death.
You can indicate to the Group Trustees who you want to receive any lump sum payment by providing the relevant details on LIFETRACK or completing a hard copy form which can be requested from the Administrator of RWE Group, WTW. The Group Trustees will consider your wishes, but they are not obliged to follow them. If you change your mind, you can update your nomination form at any time.
Please note the inheritance tax treatment of discretionary lump sum death benefits is due to change from 6 April 2027.
Pre-1986 joiners: Any lump sum payable on your death will be paid to your estate and potentially subject to inheritance tax. If you have not already done so, you can choose at any time that instead the arrangements set out above should apply to you. Then the Group Trustees will decide who should receive any lump sum payable from the Main Section on your death and the lump sum will not form part of your estate.
Pension Scams
Anyone can fall victim of a pension scam, no matter how financially knowledgeable they are. Pension scammers are large-scale and increasingly sophisticated. It is important that everyone can spot the warning signs.
You should make sure you’re aware of the ScamSmart guidance which can be found at ScamSmart - Avoid investment and pension scams | FCA.
LIFETRACK
LIFETRACK provides you with information about the RWE Group and your benefits, together with copies of important documents.
You can view and manage your personal information on LIFETRACK, including:
updating your personal details,
viewing your payslips (Pensioners and Dependants) or benefit statements (Contributing and Deferred members), and
accessing RWE Group documents.
If you are still working at RWE, you can go to LIFETRACK via Your Hub.
Once you have logged into Your Hub, selecting LIFETRACK will take you through to your personal account with no further need for log on details.
If you are no longer working at RWE or are a Pensioner, go to LIFETRACK.
Log on using your User ID and password. If you have forgotten your user ID or password, have never registered, or are having trouble logging in, you can find help and contacts on the LIFETRACK web page.
Disclaimer
This guide is a summary of the main provisions of the RWE Group relevant to you and your benefits. It is not, and is not intended to be, a summary of every detail of the RWE Group or to cover every set of circumstances.
The RWE Group’s detailed benefit provisions are set out in its formal governing documents, the trust deed and rules. This guide summarises the benefits provided by the RWE Group and its related provisions. Whilst every effort has been made to summarise the benefits and provisions of the RWE Group accurately, if there are any differences between this guide and the trust deed and rules, the trust deed and rules (as amended from time to time) will apply and override the terms of this guide.
This guide is dated January 2025. Every effort has been made to ensure the guide is up to date and accurate at the time of writing, however, subsequent changes to the RWE Group’s governing documents, applicable legislation and/or the tax regime may consequently affect its accuracy or completeness.