A&O Shearman Pension Scheme
Welcome to your guide to the Defined Contribution (DC) Section of the A&O Shearman Pension Scheme. You can find information about the Defined Benefit (DB) section of the A&O Shearman Pension Scheme at https://www.myallenoverypension.com/booklet/aohome.asp.
Important: You can also find further information about Fidelity, and other helpful information pages in the links at the top of this page. Note however that these are not specific to you or to the A&O Shearman Pension Scheme.
This website has been specifically designed to provide members (and prospective members) of the A&O Shearman Pension Scheme with a wealth of information regarding both the Scheme in general, and their own personal benefit entitlements. This website is intended for information only, it does not constitute investment or financial advice and must not be taken as a recommendation by the Trustee of the Scheme. If you are uncertain about your investment choices in any way, you should consult an independent financial adviser (IFA). You can find a list of registered IFAs in your area by going to www.unbiased.co.uk
In addition, you can view a wealth of general information regarding the Scheme, as well as detailed information regarding your pension contributions and investments and current fund value, securely online by logging on to PlanViewer.
Here are a few things to consider as a member of the Scheme
- Register for PlanViewer so you can view and manage your Retirement Account online
- Complete your expression of wish form with your nominated beneficiary details on PlanViewer and keep this up to date
- Regularly review all your pension benefits and other savings or investments, including the State Pension. For more information visit https://www.moneyhelper.org.uk/en
- Regularly read the investment information available on PlanViewer. Regularly review how much you are contributing to the Scheme along with your investment choices.
Introduction
Under the DC Section, the contributions paid by you and A&O Shearman, including any investment returns, are invested in your own individual Retirement Account. At retirement, the money available in your Retirement Account is used to provide retirement benefits.
The Scheme is a "registered pension scheme" under the Finance Act 2004. This means that the Scheme's investments receive valuable tax advantages from HMRC and members' contributions currently receive full tax relief. The benefits you receive from the Scheme at retirement will be in addition to any State Pension you may be due.
The Trustee of the Scheme is Allen Overy Shearman Sterling Pension Trustee Limited. The Trustee is responsible for investing the Scheme's assets and has set out the principles adopted in a Statement of Investment Principles.
The Scheme's Trust Deed and Rules govern its provisions. This website is for general guidance and provides only summary information. It is overridden by the Trust Deed and Rules if there is any inconsistency between them or uncertainty to any entitlement.
If you were a member of the DB Section of the Scheme immediately before 1 January 2007 different terms may apply to your benefits - these are noted where relevant. All other information on this website applies to your benefits under the DC Section only.
The day-to-day running of the Scheme is looked after by Fidelity - an external service provider. The Administration Team can be contacted using the details provided on the Contact Us page.
For current A&O Shearman employees who have payroll or general benefit queries, please address them to HR Advice via email at hr.advice@aoshearman.com.
For active members (current employees) or deferred members (former employees) who have pension scheme queries, please contact the scheme administrator Fidelity.
To contact the Trustees of the scheme, please contact Claire Perusko via email at Claire.Perusko@aoshearman.com.
A number of the terms used in this guide are shown in bold type. These are defined terms and can be found in the Glossary of terms.
Summary of the Scheme
The Scheme has two categories of DC membership
Category A
This membership category applies to members whose membership of the Scheme began before 1 April 2021. Pension contributions are based on salaries on 1 January each year (subject to a cap which applies for higher earners). The contributions payable into the DC Section for Category A members are currently age-related.
Category B
This membership category applies to members whose membership of the Scheme began on or after 1 April 2021. Rather than being based on fixed 1 January salaries, pension contributions in this category will be based on actual salaries each month (subject to a cap applying for higher earners). The contributions payable into the DC Section for Category B members will not be age-related. Instead, members can select a contribution rate of 3%, 4% or 5% of pensionable salary, and the Firm will then contribute twice this amount.
All Category A members can choose to move into Category B. This can be done via My Self Service. If you opt to move into Category B, the decision is irreversible, and it will not be possible to subsequently move back to Category A.
All new employees hired or rehired by the Firm from 1 April 2021 are automatically enrolled into Category B. Category A is not available for new hires.
What happens…
If I leave
You can leave your Retirement Account invested in the Scheme until you claim your retirement benefit.
Or
Transfer the cash value of your Retirement Account either to your new employer's plan or into a registered personal pension of your own choosing.
If you leave the Scheme with less than 30 days' Pensionable Service, any contributions you have made will be returned via payroll and you will have no holding in the Scheme.
If I die in service
A lump sum related to your Salary will be payable.*
Plus
The cash value of any contributions that you paid will be payable as an additional lump sum.
Plus
A Spouse's pension may also be payable.
* Subject to the terms of your contract of employment.
When I retire
The cash value of your Retirement Account will be used to provide you with benefits that are based on the options you have selected.
Part of your Retirement Account may be taken as a tax-free cash sum.
What can the Scheme do for me?
The DC Section of the Scheme is a money purchase arrangement - this means that contributions made by you and A&O Shearman are paid into your own personal Retirement Account in the Scheme. The benefits provided under the DC Section of the Scheme will depend on the amount you have accumulated in your own Retirement Account (which depends on the contributions made by you and A&O Shearman and the investment returns on them).
There are many benefits to being a member of the DC Section of the Scheme, including:
- The option to pay extra towards your pension;
- Flexibility - you choose how to invest your Retirement Account;
- The current option to take a tax-free lump sum when you retire;
- The option to retire early, subject to Trustee agreement;
- Employer contributions in addition to any contributions that you choose to pay under the current rules.
How do I join the Scheme?
You are eligible for membership of the Scheme following the month in which you started employment with A&O Shearman, if:
- you are normally employed in the UK on a UK contract; and
- you are aged over 16 but under State Pension Age (SPA).
If you have fixed or enhanced protection for your pension benefits which has been granted by HMRC, joining the Scheme may invalidate your protection. If this applies to you, please speak to an Independent Financial Advisor for more information.
All new employees hired or rehired by the firm from 1 April 2021 will automatically be enrolled into Category B. Category A is not available to new employees.
Membership is from the 1st of the month following your join date.
The contributions made by you and A&O Shearman will be invested for you in the default investment fund unless you choose to invest in one of the other available options. You can learn more about the default investment fund and the other investment options by consulting the Investment Choices Guide in the Forms and Documents section of PlanViewer.
Member contributions (Ordinary Contributions and Additional Voluntary Contributions) can only be paid as a deduction through payroll. These deductions are made from your gross pay and are processed before your tax is calculated so you benefit from tax relief at your marginal rate.
Fidelity International, the Scheme Administrator, will be advised that you are joining the Scheme and once your first contribution has been deducted and sent to Fidelity to invest, you will be sent a welcome pack with an introductory member guide. This contains details of how to register for PlanViewer, where you can view and manage your Retirement Account.
Full details of the Scheme and the investment choices available to you can be found on this website or on PlanViewer.
Yes – you can opt out of joining the Scheme. If you do not wish to be contractually enrolled into the Scheme, you need to contact Fidelity directly to request an Opt-out form. Please be aware that by opting out of the Scheme you will not receive any employer contributions.
If you opt out of the Scheme you will be re-enrolled automatically at the next automatic enrolment staging date if you meet the age / earnings criteria at that time and have not opted out in the previous 12 months.
If you are an active member with benefits in other pension arrangements you may be able to transfer them into the Scheme with the Trustee’s agreement.
You should be aware that we can only accept transfer values if your previous scheme gives the Trustee assurances about certain technical matters. If your previous pension scheme will not give the Trustee such assurances, it will not be possible for the Trustee to accept the transfer value.
If you decide that you wish to transfer benefits please contact your previous pension provider who will advise you accordingly on the next steps in the process.
Under new pensions legislation, you may need to provide evidence of employment with A&O Shearman including three months’ payslips and confirmation that the contributions have been paid and the dates of those payments. You should note that it may not necessarily be in your best financial interests to transfer your previous pension benefits into the Scheme. Neither A&O Shearman, the Trustee, nor the Scheme Administrator are authorised to provide you with any advice in this regard.
You should seek independent financial advice before making a decision to transfer other pension benefits into the Scheme. Learn more about what to consider with Fidelity’s transfer factsheet.
You will receive an annual statement of your Retirement Account which will detail your contributions paid and your fund value, provide confirmation of your chosen investment options, and give estimated projections of the possible pension available if you remain an active member of the Scheme until retirement.
In addition, you can view a wealth of general information regarding the Scheme, as well as detailed information regarding your pension contributions and investments and current fund value, securely online by logging on to PlanViewer. You can also use PlanViewer to review and amend your investment choices or change your selected retirement age. If you have lost your log in details and have already registered for an account, you can reset your details here.