Printing Industry Pension Scheme G R A P H I C A L , PA P E R & M E D I A S E C TO R February 2009 Chairman’s Letter Dear Member, 2008 was a difficult year for most people with very few being untouched by the financial events and credit crunch. Many PIPS members have understandably been phoning our advisers with queries about their pension investments and they are able to discuss each individual's position. This PIPS freephone facility is very valuable to members and often not available to those in other pension schemes! Because of members' concern about their investments, we have included in this newsletter, comments from our two providers (Legal & General and Standard Life) on page 2. Any member with specific queries is invited to contact our advisers (Meridan and Bentley Jennison) for guidance - phone numbers on back page. The other main feature of last year was the enactment of the Pensions Bill which introduces new pension arrangements in 2012. These may impact on some PIPS members (not detrimentally) as employers may need to review their position to be ready for 2012. More information can be found in the "Personal Accounts" article on page 2. Yours Sincerely Dennis Haynes Chairman of the PIPS Management Committee BPIF and UNITE – Scheme Sponsors Andrew Brown (BPIF Corporate are advisers just a freephone call Affairs Director) and Glyn Beaver away". (Unite Print Sector Officer) both stress Both Andrew and Glyn are confident the continued support of the two that when the new Government trade associations to the Printing pension arrangements start (in Industry Pension Scheme. Andrew 2012), PIPS will continue as a GLYN BEAVER comments "PIPS is helping the qualifying scheme and provide an industry to address the difficult attractive option for companies pension issues facing many preferring to use an industry wide companies. Glyn adds, "scheme scheme. PIPS will aim to be more members have the reassurance of responsive to employers and knowing that their union, with the members than the standard , BPIF form the committee which Government "Personal Accounts" ANDY BROWN watches over the scheme and there arrangements. Printing Industr y Pension Scheme PENSION REVIEW 2009 Pensions Bill – 2008 – Personal Accounts In the last newsletter we reported that the and as PIPS schemes will continue on receive a 3% employer contribution Pensions Bill was being introduced by the the current good value and user friendly (phased in over 3 years). Government and the new provisions basis, we hope that most, if not all As part of the PIPS policy of keeping would start in 2012. The new pension companies, will stay with PIPS. employers and members fully informed, laws are now a fact of life and, despite From 2012, the new Act requires that all in 2009 the advisers will undertake to some continued debate, will kick in as companies must have a pension scheme visit all existing PIPS employers to discuss planned. 2012 is still some way away in place which meets certain standards the implications of the new pension but PIPS will keep all members informed and most employees will be arrangements. of any changes that may apply. automatically enrolled and pay a 4% Keep watching the website for further Employers will be reviewing their pension monthly contribution. Employees can opt general news. arrangements coming up to that date out but if they stay enrolled they will also Pensions and the financial crisis: INFORMATION FOR SCHEME MEMBERS My pension in the current Standard Life is a strong financially secure business, economic climate as evidenced by our most recent business results It isn’t easy to ignore the headlines. published on 30 October 2008. When newspapers, TV and radio talk We have a robust balance sheet with a strong of a recession, market declines and solvency position that is relatively insensitive to stock market improvements. bankruptcies of high profile firms, it’s only natural to Our position has remained robust despite rough current market conditions start thinking about your own pension investments. and we can assure our customers that their savings plans with Standard But the picture isn’t as bleak as you might think. For Life are secure. mid to long term investors, riding through even the Of course, the value of investments can go down as well as up but for most severe short term fluctuations may still give you a most of our customers who typically choose a diversified mix of far greater return than having your money on the investments, their investment risk is spread with only a modest exposure to sidelines. the shares of any one particular company or sector. Is my Legal & General pension safe? The last 12 months have proved an extremely volatile period for investors, Legal & General is one of the highest rated, financially with global equity markets buffeted by the deepening crisis in financial strong insurance companies in Europe. We’ve also got markets due to problems with sub-prime lending in the US, at the same strong capital reserves on our balance sheet. This time as sky-rocketing commodity prices, and continually disappointing means that we’ve got a lot of money put by, if the economic data. During this period the Managed Fund has worst should happen, to back the business and support underperformed its benchmark as can be seen from the table below, the funds of people like you. however as you will be able to see, longer term relative performance So don’t see our current economic conditions as a remains healthy, with the Fund placed in the top 33% of Funds over 3 reason to stop investing; or as a reason to worry about years, and top 25% of Funds over 5 years. While we are disappointed with the safety of your money. Your investments with Legal & recent performance, given the long term nature of pensions we are General are investments with a financially strong pleased to be outperforming the benchmarch over longer time periods. company. What’s more, we have a proven record of 1 year 2 years 3 years 5 years managing through difficult conditions, so you can rest Managed Fund -17.29% -7.24% 3.87% 40.61% assured that we’ll be there for you every step of the (ABI) Balanced Managed Sector Average -15.76% -7.11% 2.07% 35.30% way. Percentile Rank 66 40 31 22 Legal & General aim to track the index +/- 0.50% in 2 out of 3 years a target we have successfully achieved Looking at recent performance, stock selection in the UK Equity portfolio year on year. Our view of the UK Equity Market is that was the largest drag on performance, in particular our exposure to “we remain cautious of the short term impacts of the financial stocks such as RBS and HBOS. On the positive side, exposure to credit crunch on the financial sector and of the oil related companies Tullow Oil and Expro provided the Fund with a medium term impact on the global economy in the boost. UK. We keep our focus on companies with resilient While it has been a difficult period for investors, at Standard Life business models of where self-help will deliver Investments we remain confident in our ability to delivery consistent long improving returns”. term outperformance for our valued customers. Pips Website The new PIPS website is now up and running within the printing industry. As an existing on the contact page. The FAQs (frequently - it's at: www.printindustrypensions.com PIPS member you may be able to access asked questions) provide answers to many Please have a look and by all means let us your account information online, which is typical queries but we want to stress that PIPS know what you think! easily done by clicking on the log-on address will continue to give the personal service that The website is designed for everyone to look (for your provider) on the Links page.The is so important to members. The website will at. This could be an employer looking for a contact page gives you various e-mail be complementary to this annual newsletter suitable company pension arrangement or addresses including the secretary although and enables PIPS to show current pensions perhaps an employee just looking for many members will naturally prefer to talk to news items of general interest. information about what may be available someone on the telephone numbers shown Printing Industr y Pension Scheme PENSION REVIEW 2009 Membership Details for the Year Ending October 2008 SCHEME MEMBERS Number of PIPS members Printing Industry Pension 6000 Scheme . . . . . . . . . . . . . . . . . . . . 4,996 5000 Scottish Print Pension 4000 Scheme . . . . . . . . . . . . . . . . . . . . 1,008 3000 Total: 6,004 2000 1000 PIPS FUNDS 0 80 1 2 3 4 5 6 7 8 9 2000 2001 2002 2003 2004 2005 2006 2007 2008 75 3826 4431 5667 5882 5632 5364 5589 5167 4996 70 65 60 55 SCHEME VALUATIONS 50 45 £M’S £ MILLION 40 Printing Industry Pension 35 Scheme . . . . . . . . . . . . . . . . . . 67.6 30 25 Scottish Print Pension 20 Scheme . . . . . . . . . . . . . . . . . . 19.1 15 10 Total: 86.7 5 0 1 2 3 4 5 6 7 8 9 2000 2001 2002 2003 2004 2005 2006 2007 2008 28.8 30.7 38.3 45.9 50.1 60.7 75.5 80.3 67.6 Printing Industry Charitable Organisations - PCC and GPM Trust There are two main print industry charities that exist to help people (and dependants) who work, or have worked in the industry. We have been asked to publicise the contact information about these charities to enable people (of any age) to apply for financial help if they are experiencing hardship. If you (or anybody you know who worked in the industry) wish to apply for help, the details are below and both charities invite applications to their addresses. We must stress that PIPS is not involved with applications and we are simply drawing your attention to the charities. n.b. all communications should be direct to the charity and not PIPS! GPM Graphical Paper & Media PCC – Printers Charitable Corporation Charitable Trust Administrators Contact Details: Henry Smith, Contact Details: c/o Unite Amicus The Printers’ Charitable Corporation GPM Leicester & East Midlands Branch 1st Floor - Underwood House, 235 Three Bridges Road 57 Regent Road, Leicester LE1 6YF Crawley, West Sussex RH101LS Tel: 0116 254 1900/7076 Tel: 01293 542820 Fax: 0116 254 2779 Web: www.printerscharitablecorporation.co.uk Please note that articles in this newsletter do not constitute regulated financial advice, and are only intended to provide general financial information. You are urged to contact the scheme advisers (see above) before making any important decisions about your finances. The role of the Management Committee Printing Industry Pension Scheme The role of the Management Committee is to consider the best interests of members, deferred members and pensioners in connection with their existing – Management Committee – and future pension and risk benefits (such as life cover) plans within the The chairman of the PIPS Management Committee alternates every two years Printing Industry Pension Scheme, whether or not they are members of the BPIF or UNITE/GPMS. CHAIRMAN The Management Committee and its members act in an advisory capacity and DENNIS HAYNES (UNITE) are not empowered to take any decisions of a legal nature and nor does the Management Committee have the authority to incur any financial obligation in Glyn Beaver Andrew Brown connection with the Pension Scheme. All obligations for the operation and day Unite/GPMS Officer BPIF Corporate Affairs Director to day activities for the Printing Industry Pension Scheme rest with the chosen Pension Scheme providers and our appointed advisers. nominated Unite members nominated BPIF members The Management Committee will offer guidance and assistance to the appointed Roy Taylor David Armstrong independent financial advisers and chosen scheme providers on behalf of the Flo Ormesher Andrew Clement BPIF and GPMS. They will monitor and assess the performance and Nigel Lyon administration carried out by the chosen advisers and scheme providers on behalf of the members. History Of The State Pension: 1908 – 2008 ADVISERS TO 2008 saw the 100th anniversary of the state pension and whilst most talk these days is about its inadequacy, there was a time when no pension was THE SCHEME paid to old people and the alternative was often the workhouse (see later)! One has to remember that in Victorian times, many simply lived and MERIDAN worked until they died, but by 1900 people were increasingly living beyond FINANCIAL LLP the point when they were able to work and were actually retiring. But only a Alan Hudson very few were able to enjoy their final years relaxing in comfort and many Partner were forced into the workhouses. These days we all take the state pension for granted and assume it was RSM something that Government and society wanted to give people, but this was BENTLEY JENNISON not the case. There was a long running campaign to push the government Philip Jenkins of the day into action, and the proposals were strongly opposed by the Regional Director House of Lords! A lot of credit must go to David Lloyd George, the then Chancellor, who fought to lessen the plight of the poor by guaranteeing income to those too BANKERS old to work and who met means and character tests. If you were a heavy HSBC drinker you would not receive anything, as it was feared the money would simply buy more drink. On August 1st 1908, the Old Age Pensions Act was passed, providing a PIPS SCHEME means tested (non-contributory) pension of up to 25p a week for single PROVIDERS people aged 70 and 38p for married men. First payments were made in January 1909 and over half a million old and poor people queued up at their local post office to collect the first state pensions ever paid in the UK. There have been many changes over the years to the state pension - it became a contributory scheme under the National Insurance Act in 1946, with the age lowered to 65 for men and 60 for women. The entitlement age of women will now rise to 65 by 2020 and to 68 for both sexes by 2046. Nowadays the basic weekly pension is £90.70 for every adult who has paid the full National Insurance contributions. A spouse who has not paid all their contributions can claim £54.35 a week based on their partner's payments. THE WORKHOUSE - This was the last resort of the poor and often old HERE TO HELP (most were women). The workhouses were modelled on the prison system, If you have a query about your discipline was rigid and breaking the rules could lead to increased working pension, please write to: hours, reduced diets or solitary confinement. In 1891, England had 1.3 Julie Coombs million paupers and the over 60s accounted for 30%. The workhouse had PIPS Pension Scheme Meridan Financial LLP become the state's way of caring for the elderly and, whilst they became Freepost (RLSU-JLHJ-SLAA) less harsh, they were not abolished until 1929. 7 Thomas Lane, Bristol BS1 6JG e-mail: PIPS Secretary firstname.lastname@example.org or telephone Barry was appointed as PIPS secretary in September 2001. He is responsible for ensuring that PIPS Trustee FREEPHONE Limited is compliant with the legal requirements of 0800 132100 Companies House. In addition, Barry liaises with Unite Head Office and Branches. BARRY DIXON PIPS ADVISERS: Meridan (Alan Hudson) PIPS COMMITTEE on freephone Dennis Haynes continues as chairman for 2009. Nigel Lyon has joined the committee as 0800 132100 & a BPIF nominated trustee. Nigel is MD of Pinstripe Print Group in Birmingham, and we Bentley Jennison hope he enjoys his involvement with PIPS. (Philip Jenkins) on 0207 9203203.