Your guide - Vodafone Pensions

1 Click to beginThe Vodafone UK Defined Contribution Pension PlanA pension is one way of helping you lead a comfortable lifestyle in guideWelcome to your guide to the Vodafone UK Defined ContributionPension Plan (the Plan). The Company is committed to providing excellent pension benefits and helping you to plan for your retirement. Membership of the Plan is a valuable benefit. This bookletexplains the benefits the Plan provides and information on thedecisions you may need to make. Work your way through the booklet by clicking the next buttonor selecting a topic from the menu to the 2 5- How the Plan works-JoiningBenefits 6 9- When you take your pension- Other benefits- If you leaveCosts 10 14- How are contributions made to the Plan?

2 -How much will it cost me to join?-How can I increase my benefits?Investments 15 17- Things to consider when choosingwhere to invest-Types of investment -Where can I invest?Details 18 22-How the Plan is run-Disputes-Useful contacts-GlossaryThroughout the booklet thereare a number of technicalterms. We have explainedthese in the Glossary on page 22 to help months after joining Vodafone you will beautomatically enrolled into the ContributionsContributions to the Plan are normally made through salarysacrifice. This means that you sacrifice (give up the right toreceive) a specific amount of salary based on yourcontribution rate.

3 The Company then makes contributionsinto your Account in the Plan that incorporate your salarysacrifice and its matched InvestmentsYou choose where to invest your Account from a number ofoptions. Depending on the performance of your investments, your Account could increase or decrease in value. Go Watch the How it works the Plan worksTotalcontributions toyour Account your salarysacrificeInvestment 1 Investment 2 Investment 3 25%tax-free lump sumOption 1 Option 2 Option 375%used to buy a pension25%tax-free lump sum75%used to buy a drawdownarrangement25%tax-free lump sum75%as cashthat is subject to income taxInvestmentperformance123 Company scontributionIntroduction 2 5- How the Plan works-JoiningBenefits 6 9- When you take your pension- Other benefits- If you leaveCosts 10 14- How are contributions made to the Plan?

4 -How much will it cost me to join?-How can I increase my benefits?Investments 15 17- Things to consider when choosingwhere to invest-Types of investment -Where can I invest?Details 18 22- How the Plan is run-Disputes-Useful contacts-Glossary3 How the Plan works3. RetirementThe Plan has a Normal Retirement Age (NRA)of 65. You can retire up to 10 years beforethis, but please be aware the Government isincreasing the minimum retirement age, sothis may change when you reach NRA. Whenyou take your pension, the money in yourAccount will be used to buy have three options available to you: You can take up to 25% as a tax-free lumpsum and use the rest to buy a pension (orannuity) that will provide you with aguaranteed income for the rest of your life; You can take up to 25% as a tax-free lumpsum and use the rest to buy a drawdownarrangement where your fund remainsinvested (with a provider outside the Plan).

5 You can withdraw income but the provideryou go with may charge you when you geta payment and for managing your funds; or You can take your account as a cash lumpsum. Here the first 25% is tax-free, theremainder is subject to income can also choose a combination of these options. If you need further information about theprocess, please contact Towers to find out more about the Plan:What don t want to be a member?You can opt out of the Plan, however, in line with legislation, Vodafone mayput you back into the Plan at least every three years..I have benefits in other pension arrangements?You may be able to transfer them into the Plan.

6 I take a career break?If you are on paid leave from the Company, contributions to your Accountwill continue based on your pay at that time. If your leave is unpaid,contributions to your Account will stop, but you can leave your become ill and can t work?You could receive an income of 50% of your Basic Salary (see page 8 formore information)..I die whilst working for the Company?The Plan provides life cover, so your dependants would receive a lump sumof three times your salary. You can choose to increase your life cover to amaximum of eight times your Basic Salary by paying a small premium. Findout more on page have any questions?

7 Vodafone Pensions looks after the day-to-day running of the Plan and isavailable to help answer any queries you may have about your details are on page 2 5- How the Plan works-JoiningBenefits 6 9- When you take your pension- Other benefits- If you leaveCosts 10 14- How are contributions made to the Plan?-How much will it cost me to join?-How can I increase my benefits?Investments 15 17- Things to consider when choosingwhere to invest-Types of investment -Where can I invest?Details 18 22- How the Plan is run-Disputes-Useful contacts-Glossary4 How the Plan worksJoiningThe sooneryou start to save, the more you couldreceive whenyou decisions can I make?

8 You can choose: To join the Plan before you are automatically enrolled; How much you want to contribute; and Where to invest your the Costs and Investments sections for more you do not make any choices you will automatically sacrifice 3% of your Pensionable Salary each month and be invested in the Cash Lifestyle fund. What if I m already a member of another pension arrangement?You can join even if you are already contributing to another pension arrangement (subject to certain tax limits).5 JoiningA pension is one way of helping you lead acomfortable lifestyle in retirement. Generally,the earlier you start making contributions,the amount of tax advantaged savings that youcan make into UK Pensions is restricted by theAnnual and Lifetime Allowances.

9 Both of theseare set by the Government. More informationabout these allowances can be found in the Q&Asection of happens if I opt out of the Plan?You will still be eligible for life cover of three times your Basic Salary. Every three years, in line with government legislation, Vodafone will automatically re-enroll all employeeswho have opted out of the can I join? You can join the Plan at any time. The Plan is open to all employees over the age of 16 but under the age of 75. Three months after you have joined Vodafone you will automatically become a member of the Plan and sacrifice 3% of your Pensionable Salary each should I join?

10 The Plan is a cost-effective way to build up benefitsfor retirement because: The Company contributesto your Account allowing you to significantly increase the amountyou could save on your own. You get tax reliefand National Insurance (NI)savings through salary sacrifice this means it costsyou less than you think. You receive other benefitsincluding ill-healthbenefits and life sooner you start to save, the more you couldreceive when you retire because yourcontributions will be made for longer, investedfor longer and so have more of a chance to 2 5- How the Plan works-JoiningBenefits 6 9- When you take your pension- Other benefits- If you leaveCosts 10 14- How are contributions made to the Plan?