RETIREMENT PLAN

1 RETIREMENT plan LIFETIME BENEFITS plan SECTION CONTENTS plan IN BRIEF KEY WORDS JOINING CONTRIBUTIONS INVESTMENT BENEFITS TEMPORARY ABSENCE LEAVING STATE ARRANGEMENTS GENERAL INFORMATION 3 4 5 6 8 9 11 12 13 14 THIS GUIDE IS ONLY FOR YOU IF CONTRIBUTIONS TO THE plan ARE MADE USING SMART PENSIONS. IT DOES NOT OVERRIDE THE LEGAL DOCUMENTS THAT GOVERN THE plan , WHICH ARE AVAILABLE ON REQUEST 2 plan IN BRIEF SAVING FOR YOUR RETIREMENT The Lifetime Benefits plan section of the Cable&Wireless Worldwide RETIREMENT plan is designed to help you make tax effective savings for your RETIREMENT . You ll have a personal Account into which contributions are paid.

2 The Account enjoys tax privileges which means that your money can grow faster to provide more for your RETIREMENT . Using Smart Pensions, Cable&Wireless Worldwide will pay between 3% and 12% ( if you were employed before 1 May 2012) into your Account , depending on the amount of salary you choose to sacrifice through the flexible benefits programme. As a result of new auto-enrolment legislation, from 1 April 2013 the minimum contribution is 3% You may also pay Additional Voluntary Contributions, but they won t be matched by Cable&Wireless Worldwide. As contributions are accounted for before tax is calculated you receive immediate tax relief, currently at your highest rate.

3 INVESTMENT Your Account is managed by professional investment managers. Contributions will be invested monthly, normally on the first Dealing Day following pay day. RETIRING With Cable&Wireless Worldwide s consent you can currently retire at any age from 55 onwards. RETIREMENT before the age of 55 may be allowed in cases of serious ill-health. WHEN YOU RETIRE Your Account will be used to buy a pension - and you can choose the type of pension that suits you. You may take part of your Account as a cash payment which is currently tax-free. IF THE UNEXPECTED HAPPENS The plan provides a cash payment if you die in service.

4 IF YOU LEAVE If you leave the plan within three months of joining you ll receive either a refund - based on any voluntary contributions - or a similar payment based on the Smart Pensions contributions from Cable&Wireless Worldwide. These payments will make allowance for investment returns and will be taxable. If you leave after more than three months, but less than two years, you have the choice of a refund or a transfer to another pension arrangement (which will include the value of the company s contributions). Any refund won t include the value of the company s contributions. If you leave after more than two years your Account can be left invested in the plan until RETIREMENT or transferred to another pension arrangement.

5 YOU RE IN CONTROL You choose how much is paid to the plan . You can change the payment level in the future to suit your circumstances. You can choose the investment strategy that best matches your financial plans. You select a package of RETIREMENT benefits to suit you. 3 KEY WORDS ACCOUNT means your RETIREMENT savings account built up from contributions, and the investment returns on these contributions. ADDITIONAL VOLUNTARY CONTRIBUTIONS (AVCs) are contributions which you choose to make in addition to your Smart Pensions payments, in order to provide extra pension on RETIREMENT . DEALING DAY is the day on which the investment manager buys and sells investments on behalf of plan members.

6 EARNINGS CAP is the limit on earnings that contributions relate to if you were employed before 1 May 2012. The Earnings Cap ( 141,000 for the tax year 2013/2014) will increase annually, broadly in line with the increase in the Retail Prices Index. ELIGIBLE EMPLOYEE means all Cable&Wireless Worldwide colleagues under the age of 63 at the date of joining, regardless of the number of hours worked. NORMAL RETIREMENT DATE is the date from which you would normally expect to receive RETIREMENT benefits from the plan , and is the end of the month in which you reach age 65. PENSION INPUT PERIOD is set by the trustee as the year to 5 April and is the period over which your pension savings are tested against the Annual Allowance (see page 7).

7 PENSIONABLE SALARY is your annual rate of basic salary (subject to the Earnings Cap if you were employed before 1 May 2012, and before any reduction for Smart Pensions or Smart Childcare, if applicable) unless your employer informs you differently in writing. plan YEAR means a calendar year. RETAIL PRICES INDEX is an index by which the rate of inflation on standard goods and services is measured. SMART PENSIONS is an efficient way of making payments to the plan . Instead of you making contributions, the company increases its contributions by the amount of contractual salary you choose to give up.

8 The company then reduces your pay by that amount. The Smart Pensions booklet on the pensions website has more information and worked examples. STATE PENSION AGE For men born before 6 December 1953, the current State Pension Age (SPA) is 65. For women born after 5 April 1950 but before 6 December 1953, their SPA is between 60 and 65. Under the Pensions Act 2011 women s SPA will increase more quickly to 65 between April 2016 and November 2018. From December 2018 the SPA for both men and women will start to increase to reach 66 in October 2020. These changes affect you if you're a woman born on or after 6 April 1953, or a man born on or after 6 December 1953.

9 The current law already provides for the State Pension age to increase to 67 between 2034 and 2036, and 68 between 2044 and 2046. However, the government announced on 29 November 2011 that SPA will now increase to 67 between 2026 and 2028. This change is not yet law and will require the approval of Parliament. 4 JOINING HOW DO I JOIN? You ll be automatically entered into the plan when you join the company. Just complete the personal details form contained in your joiner pack and return it as instructed. You may be asked to provide your birth and marriage certificates and evidence of health. We ll let you know if these are required.

10 When you join the plan , you re automatically included in Smart Pensions. We ll then ask you to register your details on the pensions website and make your investment choices. If you don t make an investment choice, your contributions will be invested in the Lifestyle Equity Fund. If you re one of the few that would be disadvantaged under Smart Pensions, you ll be automatically excluded and you ll make contributions outside the Smart Pensions framework. When you join the plan you re encouraged to complete an online nomination. This tells the trustee who you would prefer to receive the cash payment in the event of your death in service.