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Capgemini UK Pension PlanDefined Contribution Section

April 2008

1 DEFINED CONTRIBUTION SECTION

The amount of benefits eventually payable

will not be known until you actually retire.

The Capgemini UK Pension Plan -

Defined Contribution Section

(“the Plan”) has been set up to

provide you with one or more of

the following benefits:

• a pension when you retire, with

the option to take part of your

fund as a tax-free cash sum with a

smaller pension

• protection for your dependants

if you die in service (known as

Dependants’ pension)

• the opportunity when you retire to

set up benefits for your dependants

on death after retirement

The Plan provides benefits on a

Defined Contribution basis. This

means that your contributions and

those of the Company will be paid into

a retirement account that is opened in

your name, and when you retire you

use the accumulated pension fund to

provide retirement benefits chosen to

suit your circumstances at that time.

The amount of benefits eventually

payable will not be known until you

actually retire, and will depend upon

the following factors:

• the amount of money put into the

Plan on your behalf

• the investment performance of

those funds

• the terms on which your retirement

account is converted into a pension

Your Basic Contributions will be fixed

at 3% of Pensionable Salary plus the

Age-Related Company Contribution

applicable to your age band. On

top of the Basic Contributions you

can elect to pay Fixed Additional

Contributions and/or Variable

Additional Contributions if you wish.

As a member of the Plan you will also

build-up benefits under the State

Second Pension (S2P), although you

can elect to contract-out of S2P on

an individual basis with an external

provider if you wish. All retirement

benefits are funded, which means that

your retirement account forms part

of a fund that is held and invested

by the Trustees, and is completely

separate from the Company’s assets.

This booklet gives a broad outline

of the benefits offered to you as a

member of the Plan. It does not in

any way override the Plan’s Trust

Deed and Rules, which govern the

operation of the Plan and will always

take precedence. The different aspects

of the administration of the Plan are

undertaken, on behalf of the Trustees,

by Xafinity Consulting.

Section Page

1. Terms used in

this Booklet 2-3

2. Joining the Plan 4-5

3. Contributions 6-7

4. Investments 8

5. Retirement Benefits 9-10

6. Leaving the Plan 11-12

7. Benefits on

Death-in-Service 13-14

8. Temporary Absence

and Changes in

Working Hours 15-16

9. General Information 17-20

10. Investment Fund

Choices 21-28

11. State Pension Scheme

and Contracting-Out 29

Introduction

DEFINED CONTRIBUTION SECTION 2

Certain terms are used throughout

the booklet. Their meanings are

explained below:

Active Member

• A current employee of the Company

who is a member of the Plan and in

respect of whom contributions are

being paid.

Annual Allowance

• This was introduced by the Finance

Act 2004 with effect from 6 April

2006. It represents the maximum

pension contributions that can be

paid in each fiscal year without an

additional tax charge being payable.

The Annual Allowance is £235,000

in the tax year 2008/09, increasing

annually until it reaches £255,000

in the tax year 2010/11. The Annual

Allowance is likely to continue to

increase in subsequent years.

Company

• Capgemini UK plc and all the

participating employers of the Plan.

Dependant

• Your spouse, partner (including civil

partner) or financial dependant

(including children) nominated on

the Dependant Nomination Form

(see Pensions Intranet site or contact

The Pensions Team).

Incapacity

• Physical or mental deterioration

which, in the opinion of the

Principal Employer on the advice of

a registered medical practitioner,

gives rise to you being unlikely at

any point before your Normal

Retirement Age to be able to engage

in any suitable employment. In

addition, if you are under age 50,

the Trustees must be satisfied that

you are, and will continue to be,

incapable of carrying out your

occupation.

Inflation

• Inflation in this booklet means

the increase in the cost of living

as measured by the Retail Prices

Index (RPI).

In-Service Deferred Member

• A member of the Defined Benefit (DB)

Section of the Plan whose Pensionable

Service ceased on 31 March 2008, but

who was notified by the Company

that his/her benefits will continue to

be linked to the higher of Pensionable

Salary and Underpin Pensionable

Salary until the earlier of taking

his/her pension benefits or electing

to break such link.

Lump sum life assurance benefits

and dependants’ pension benefits

after 31 March 2008 remain

unchanged for In-Service Deferred

Members. For In-Service Deferred

Members who join the Defined

Contribution Section, Section 7.

Benefits on Death-in-Service of this

pension booklet is not applicable,

and the In-Service Deferred Member

Section booklet should be referred

to instead.

If an In-Service Deferred Member is

not affected by the Plan Cap under the

In-Service Deferred Member Section,

then the Plan Cap will not apply

under the DC Section.

Lifetime Allowance

• This was introduced by the Finance

Act 2004 with effect from 6 April

2006. It represents the maximum

value of an individual’s pension

benefits from all sources. If exceeded,

an additional tax liability is incurred.

The Lifetime Allowance is £1.65m

in the tax year 2008/09, increasing

annually until it reaches £1.8m in

the tax year 2010/11. The Lifetime

Allowance is likely to continue to

increase in subsequent years.

Normal Retirement Age (NRA)

• Your 65th birthday

Following the introduction of age

discrimination legislation in December

2006, if you remain in service beyond

NRA you can continue as a contributing

member of the Plan if you wish.

Pension Commencement Lump

Sum (PCLS)

• The new term introduced by the

Finance Act 2004 for the tax-free

cash sum that can be paid to a

member on taking benefits. All

references to benefits being “tax-

1. Terms used in this Booklet


free” reflect current legislation but

are subject to any future changes

in legislation.

Pensionable Salary

• Reference Salary, as determined at

your date of joining the Plan and

each subsequent 1 April. This figure

is subject to the Plan Cap.

Pensionable Service

• Period of active membership (see

definition of Active Member above).

Plan

• Capgemini UK Pension Plan -

Defined Contribution Section.

Plan Cap

• This was formerly the earnings limit

(known as the Earnings Cap) by

reference to which contributions

were paid (or benefits calculated)

for members who joined a pension

arrangement after 31 May 1989. It

was originally imposed by HM

Revenue & Customs (HMRC), but

with effect from 1 April 2006 has

been adopted as the ‘Plan Cap’ for

the same group of members. The

Plan Cap now represents the

maximum level of pensionable

earnings on which Total Basic

Contributions and Fixed Additional

Contributions are calculated, and

the maximum level of total

contributions (Basic Contributions,

Fixed Additional Contributions and

Variable Additional Contributions)

which can be paid in any Plan Year.

The Plan Cap continues to be

reviewed annually on 1 April and

for the tax year 2008/09 is

£117,600 per annum.

Plan Limits

• The limits previously imposed by

HMRC as a condition of approval.

These have now been adopted as

Plan limits, unless otherwise stated.

Plan Year

• 1 April to 31 March.

Principal Employer

• Capgemini UK plc.

Qualifying Service

• Pensionable Service plus any

previous service with an employer

covered by a transfer of pension to

the Plan or in respect of a TUPE

transfer. Qualifying Service will also

include Salaried Service in the case

of an In-Service Deferred Member.

Reference Salary

• Basic salary from time to time

excluding any bonuses or other

payments. This figure is subject to

the Plan Cap.

Renewal Date

• 1 April each year.

S2P

• State Second Pension.

Salaried Service

• This term relates only to In-Service

Deferred Members. It means any

period of service under the In-

Service Deferred Section after

31 March 2008 in respect of which

the higher of Pensionable Salary

and Underpin Pensionable Salary is

used to calculate the In-Service

Deferred Member Section benefits.

State Pension Age

• 65 for males and for females born

on or after 6 April 1955

• 60 for females born before 6 April

1950

• phased from 60 to 65 for females

born between 6 April 1950 and

5 April 1955

Trust Deed and Rules

• The governing documentation of

the Plan.

Trustees

• The individuals appointed to carry

out the purposes of the trust in

accordance with the provisions of

the Trust Deed and Rules and the

general principles of trust law.

Underpin Pensionable Salary

(applies only to members of the In-

Service Deferred Member Section

who joined the DC Section on or

after 1 April 2008)

• The Pensionable Salary on 1 April

2007 increased on each 1 April

thereafter by the increase in the RPI

(capped at 2.5%) for the year to the

previous September.


If you are eligible for Flex ChoiceS you join

via Flex ChoiceS online.

2. Joining the Plan

*available on the Pensions Intranet

site or from The Pensions Team

(see page 20 for contact details).

Eligibility

Permanent Employees and

Fixed Term Contract Employees

- aged at least 16 will be able to join on

the first of any month after joining the

Company. If you are eligible for Flex

ChoiceS you join via Flex ChoiceS

online. Employees not eligible for Flex

ChoiceS will need to complete an

Application Form.*

All employees aged between 16 and

65 are automatically covered for the

death-in-service lump sum benefit

(known as “life assurance”) as soon as

they join the Company. The level of

life assurance provided can be varied

through Flex ChoiceS.

In-Service Deferred Members

Members of the In-Service Deferred

Member Section remain eligible to

join the Defined Contribution (DC)

Section of the Plan on the 1st of any

month after 31 March 2008. For

further information, please refer to

the In-Service Deferred Member

Section booklet (available on the

Pensions Intranet site).

If you are not an In-Service

Deferred Member and wish to opt-

out of the Plan whilst remaining

employed by the Company you are

required to give one month’s written

notice of your intention to withdraw.

You would only be able to rejoin the

Plan at a later date with the Trustees’

consent and the agreement of the

Principal Employer. Also, to be

eligible for the lump sum benefit used

to secure the Dependants’ death-in-

service pension (known as

Dependants’ pension) you may be

required to provide medical evidence

as determined by the insurers. The

insurers reserve the right to decline or

restrict cover for this benefit.

Employees eligible for Flex ChoiceS

will only be covered for this benefit if

it is selected.


If you are an In-Service Deferred

Member and wish to opt-out of the

Plan whilst remaining employed by

the Company, you will not be able to

rejoin. If you choose to opt-out of the

Plan it means that you must opt-out

of both the In-Service Deferred

Member Section and the Defined

Contribution Section. You cannot

opt-out of only one Section.

Application

Membership of the Plan is voluntary.

If you are eligible for Flex ChoiceS

you join via Flex ChoiceS online. This

will show you the contribution levels

and investment choices from which

you may select.

If you are not eligible for Flex

ChoiceS, you join by completing an

Application Form.*

You should note that when registering

for membership via Flex ChoiceS (or

completing an Application Form if

you are not eligible for Flex ChoiceS)

you should specify the fund(s) in

which all the contributions paid are

to be invested (see Section 10.

Investment Fund Choices).

You should ensure you complete both

the Beneficiary Nomination Form*

and the Dependant Nomination Form

(available on the Pensions Intranet site)

*Available on the Pensions Intranet


(see page 20 for contact details).

Benefits from a Previous

Pension Arrangement

It may be possible for the cash value

of the retirement benefits to which

you are entitled under other pension

arrangements to be transferred into

the Plan.

Any decision to transfer should be taken

with great care and you should consider

taking independent financial advice.

Any benefits transferred will form part

of your overall Capgemini benefits and

become subject to Plan Limits.

A transfer-in can only be made with

the Trustees’ consent. The Trustees

would normally be willing to accept

a transfer of benefits, except where

any legislative requirements relating

to such a transfer would place an

unacceptable administrative or

financial burden on the Plan.


3. Contributions

Plan Contributions

There are three types of contributions:

• Basic Contributions

• Fixed Additional Contributions

• Variable Additional Contributions

If you are eligible for Flex ChoiceS

you will be a ‘non-contributory’

member from the date you join the

Plan. An amount for member

contributions will not be shown on

your payslip. Instead, the Basic

Contributions (3% of Pensionable

Salary), together with the Age-Related

Company Contributions and any

Fixed Additional Contributions you

have elected to pay, will be treated as

a single pension figure deducted from

your Flex Fund.


ChoiceS you will remain as a

contributory member. You have the

same contribution choices, and the

same limits apply to you, as for a

Flex ChoiceS member.

Basic Contributions

Total Basic Contributions are made

up of:

(i) Basic Contributions (3% of

Pensionable Salary)

(ii) Age-Related Company

Contributions

The Age-Related Company

Contribution rate is 4%, 6%, 8% or

10% of your Pensionable Salary,

depending on your age at the date of

joining the Plan and each subsequent

1 April. The Age-Related Company

Contributions reflect the fact that the

cost of pension provision increases

with age.

The Total Basic Contributions (Basic

Contributions plus Age-Related

Company Contributions i.e. the

minimum contributions for your age)

are shown in the table below:

Fixed Additional Contributions

In addition to the Total Basic

Contributions, you can elect to pay

Fixed Additional Contributions (up to

50% of your Reference Salary including

your Total Basic Contributions). Fixed

Additional Contributions must be fixed

at the start of the Plan year (1 April)

or alternative 1st of the month you

join the Plan, and paid until the end

of the Plan year (31 March) or earlier

date of leaving.

In addition to qualifying for tax relief,

National Insurance contributions

are not payable on Fixed Additional

Contributions if paid through

Flex ChoiceS.

Variable Additional Contributions

You can also elect to pay Variable

Additional Contributions, as long as

your total contributions (i.e. your

Total Basic Contributions and any

Fixed Additional Contributions you

pay) do not exceed 75% of your

Reference Salary.

Age-Related Company Contributions

Basic Under 30 30 – 39 40 - 49 50 and overContributions 4% 6% 8% 10%

3% 7% 9% 11% 13%

Total Basic Contributions


Variable Additional Contributions are

payable on a regular monthly basis or

as one-off payments or both. Regular

monthly payments can be stopped or

started with effect from the 1st of any

month. Although these contributions

qualify for tax relief, National

Insurance contributions are payable

on them.

The maximum level of total

contributions (Basic Contributions,

Age-Related Company Contributions,

Fixed Additional Contributions and

Variable Additional Contributions)

which can be paid in any Plan Year is

75% of Pensionable Salary, subject to

overall contributions in the Plan Year

not exceeding the lower of the Plan

Cap or the Annual Allowance,

as applicable.

Your Basic Contributions and Fixed

Additional Contributions remain fixed

during the Plan Year (known as Fixed

Contributions), unless you experience

a Lifestyle Event. Further information

on Lifestyle Event changes is available

on the Flex ChoiceS section of the HR

Intranet or contact the HR/Payroll

Helpdesk on 762 8701 (internal) or

01667 458701 (external).

For details of the impact of temporary

absence from work and changes in

working hours on your pension

contributions see Section 8. Temporary

Absence and Changes in Working Hours.

You have a choice as to where all the

contributions paid on your behalf are

invested (see Section 10. Investment

Fund Choices).

The Plan is not contracted-out of the

State Scheme. This means that as a

member of the Plan you will also be

earning a State Second Pension (S2P)

entitlement, in addition to the Basic

State Pension (see page 29).

Contributions will be payable by the

Company on your behalf while you

remain in Pensionable Service, but

see Section 8. Temporary Absence and

Changes in Working Hours regarding

temporary absence from work and

changes in working hours.


ChoiceS, Application Forms for Fixed

Additional Contributions and Variable

Additional Contributions are available

on the Pensions Intranet site or from

The Pensions Team.

Tax Relief

Your pension contributions are

not normally subject to tax. They

are deducted from your pay before

income tax is calculated, which

means that you receive tax relief at

the highest rate you pay.

Annual Allowance

The total contributions paid on your

behalf are tested against the Annual

Allowance. If they exceed the Annual

Allowance, a tax liability on the amount

over the limit would be incurred.

Your Retirement Account

All pension contributions paid by

you, or the Company on your behalf,

accumulate in your retirement

account, to provide benefits for you

and for your Dependants on your

retirement or death.

Each year you will receive a benefit

statement from the Trustees, showing

the current value of your retirement

account.


4. Investments

As explained in Section 10. Investment

Fund Choices, a range of funds is

available to you for the investment

of the contributions paid on your

behalf. When you first become a

member you must select the

investment funds of your choice.

• if you are a member of Flex

ChoiceS you will be asked to make

your investment choices as part of

the annual registration process

• if you are not a member of Flex

ChoiceS the necessary forms are

available on the Pensions Intranet


(see page 20 for contact details)

You may redirect the investment of

future payments into the fund(s) of

your choice, without a switching

charge, at 1 April and/or 1 October

each year. You may also switch your

existing investments between the

available funds at these dates without

incurring a switching charge.

You have several options for the way

contributions are invested. You can

either let the investment strategy be

determined for you or you can choose

your own personal investment strategy.

Your choice of funds will be influenced

by your personal circumstances and

view of different types of investment

risk. This booklet does not seek to give

investment advice.

For more detailed information see

Section 10. Investment Fund Choices or

the Pensions Intranet site.

If you are in any doubt about

which investments to choose, you

should consider taking independent

financial advice.

Investment Funds

• Passive Management or “index-

tracking” is a style of investment

management designed to track the

performance of a stock market

index. The fund manager

makes no judgement on how a

company’s shares are likely to

perform, but instead holds the

same stocks as those contained

within a particular index, or holds

a similar range designed to follow

the performance of that index.

• Active Management is the

process whereby investment

managers actively pick individual

stocks within different/individual

investment markets. The aim is

to produce greater returns than

the passively managed approach,

but there is a higher risk level

and greater volatility in individual

years. This approach gives the

investment manager greater

freedom in deciding how to invest.

The fund performance depends

on the investment manager’s

judgement in stock selection.


5. Retirement Benefits

Retirement at Normal

Retirement Age

Your pension is based upon the value

of units held in your retirement

account, which is made up as follows:

Contributions

+/–

Investment

Returns

=

Fund at

Retirement

You will have a number of options

concerning how you wish to take

your benefits, as follows:

• a pension for you alone

• a pension for you, and a pension

for your Dependant(s) on your

death

• annual pension increases on the

pension whilst it is being paid

• a balance of five year guarantee

on your pension (see page 10)

• a cash sum (tax-free under present

law and practice) plus a reduced

pension

• a combination of the above options

Shortly before you retire, an

illustration of your retirement benefit

options will be provided to you.

Pension

You can use all or part of the fund in

your retirement account to purchase a

pension, which at your option can be

on either a level or increasing basis.

Dependants’ Pensions on

Death After Retirement

Before your pension is set up, you

can decide if you wish to give up

part of your own pension to secure

a Dependants’ pension. Any

Dependants’ pension will start on the

day following the date of your death

and will be payable for life, unless the

Dependant is a child (in which case

the pension will normally cease when

he or she reaches age 18, or 23 if still

in full-time education).


Balance of 5 Year Guarantee

If you have elected this option, then

in the event of your death within

5 years of commencement of your

pension, a lump sum will be payable

to your Dependants. This lump sum

represents the balance of unpaid

pension payments expected over the

remainder of the 5 year period.

Pension Commencement

Lump Sum (PCLS)

Part of the value of your retirement

account may be taken as PCLS. The

maximum PCLS you can receive

when you retire is 25% of the value of

your retirement account. If you would

have received a higher tax-free cash

sum using the calculation basis in

force before 1 April 2008, then the

benefits up to that date will be tested

against both calculation bases and the

higher amount may be taken.

* based on current legislation


Member and wish to maximise your

PCLS, you must first take the

maximum PCLS that you would have

been able to take under the Defined

Benefit Section, if you had retired

prior to 1 April 2008, before you

decide whether you wish to take the

remaining PCLS from the Defined

Contribution Section. For further

details, please refer to Section 8. Plan

Limits of the In-Service Deferred

Member Section booklet, available

on the Pensions Intranet site.

Early Retirement

You may retire early with immediate

benefits if you are age 50 or over

(until 5 April 2010), or age 55 or

over (from 6 April 2010). However,

you may retire at any time on the

grounds of Incapacity.

Retirement after Normal

Retirement Age

If, with the Company’s agreement,

your retirement is postponed until

after Normal Retirement Age (but no

later than age 75), contributions may

continue (see Section 3. Contributions)

up to the date you leave service or

earlier date of leaving the Plan. Once

contributions cease, your retirement

account will remain invested in the

fund(s) of your choice until you

actually retire and the benefits

become payable. It will not be

possible to take a lump sum and defer

the payment of your pension.

Payment of Pension

Your pension will be payable for life.

It is normally paid by monthly

instalments and is regarded as earned

income for taxation purposes.


Member, your benefits under the

In-Service Deferred Member Section

and the Defined Contribution Section

must be taken at the same time.

Contributions Deducted in the Month of Leaving

The last contribution deducted from

your pay will depend on when you

actually leave. If you retire from

service before the 16th of a month,

no contributions will be deducted

for that month. However, if you

retire on or after the 16th of a month,

full contributions for that month will

be deducted.


6. Leaving the Plan

Your options on leaving the Plan are

as follows:

1) to retain your retirement account

in the Plan as a deferred benefit -

this will include all contributions

paid both by you and by the

Company on your behalf; although

no further contributions can be

paid the monies will continue to be

invested in accordance with your

investment choices (see Deferred

Benefits below)

or

2) to transfer the value of your

retirement account to another

suitable pension arrangement

(see Transfer Value below)

If you joined the Plan before 1 July

2006 and leave with less than 2 years’

Qualifying Service, you will also have

the following option:

3) to receive a refund of the value

of your own contributions paid

before 1 July 2006, less 20% tax*

* The Plan is still required to offer you

a net refund of the value of your

contributions paid prior to 1 July

2006, although if you elect this option

you will lose the right to a deferred

pension or transfer value. The value of

your contributions to the Plan takes

into account any investment gain

(or loss) experienced during your

membership of the Plan. You should

note that a refund will not include any

contributions paid by the Company or

take into account any investment gain

(or loss) on these contributions.

Early Retirement

from Deferred Status

Although your benefits are payable

from your Normal Retirement Age,

once you have attained age 50 (until

5 April 2010) or age 55 (from 6 April

2010), or earlier in the case of

Incapacity, you can request immediate

early retirement and the value of

your retirement account will be used

to provide your retirement benefits

(see Section 5. Retirement Benefits).

Transfer Value

As an alternative to the deferred

benefit described above, you can

choose to have the cash value of your

retirement account transferred to

another suitable pension arrangement.

Such a transfer will normally be to:

• a new employer’s scheme (provided

it will accept the transfer payment)

or

• a registered pension scheme or

other suitable individual policy, in

your own name with the provider

of your choice

This decision does not have to be

made immediately after leaving. You

can transfer your pension entitlement

at any point between leaving and one

year before Normal Retirement Age.

In the meantime, your retirement

account will continue to be held in

the Plan and invested in accordance

with your investment choices.


The transfer value paid will be the

value of your retirement account at

the date it is encashed, following

receipt of your instructions. You will

be provided with an estimated transfer

value to assist you in making your

decision, but the amount will not be

guaranteed because fund values can

change on a daily basis. You should

consider taking independent financial

advice before making a decision to

transfer your benefits.


Member, your benefits under the In-

Service Deferred Member Section and

the Defined Contribution Section

must be treated in exactly the same

way e.g. if you elect a transfer then

the benefits from both Sections must

be transferred at the same time.

Death in Deferment

If you die after leaving the Plan, but

before your benefits become payable,

the value of your retirement account

will generally be payable by the

Trustees as a lump sum to your

Dependant(s). You are recommended

to update your Beneficiary

Nomination Form if your personal

circumstances change. This form is

available from the Pensions Intranet

site or The Pensions Team (see page

20 for contact details).

Rejoining the Plan

If you are not an In-Service Deferred

Member and opt-out of the Plan whilst

remaining employed by the Company,

you will only be able to rejoin the

Plan at a later date with the Trustees’

consent and the agreement of the

Principal Employer. In order to be

entitled to the lump sum benefit used

to secure the Dependants’ death-in-

service pension (known as Dependants’

pension), you may be required to

provide any such medical evidence

determined by the insurers. The

insurers reserve the right to decline or

restrict cover for this benefit.


Member and opt-out of the Plan

whilst remaining employed by the

Company, you will not be able to

rejoin. If you choose to opt-out of the

Plan it means that you must opt-out

of both the In-Service Deferred

Member Section and the Defined

Contribution Section. You cannot opt-

out of only one Section.

Contributions Deducted

in the Month of Leaving

The last contribution deducted from

your pay will depend on when you

actually leave. If you leave before the

16th of a month, no contributions

will be deducted for that month.

However, if you leave on or after the

16th of a month, full contributions

for that month will be deducted.


This Section does not apply to In-Service Deferred Members – if you

are an In-Service Deferred Member you should refer to Section 4.

Death Benefits of the In-Service Deferred Member Section booklet.

However, as an In-Service Deferred Member, if you die in service the

value of the units held in your DC Section retirement account will also

be payable as a lump sum.

7. Benefits on Death-in-Service

The following applies to you if

you are NOT an In-Service

Deferred Member.

Death-in-Service before

Normal Retirement Age

If you die in service on or before your

Normal Retirement Age, the following

benefits will be payable:

Life Assurance

A life assurance benefit equal to

4 times your Reference Salary,

calculated at the date of your death

(or other such multiple elected under

Flex ChoiceS - see Note (i) on page 14).

This life assurance benefit will

continue while you are in service,

until age 65, even if your benefits

are paid earlier.

Dependants’ Pension

A further lump sum, equal to 4 times

(or other such multiple as you elect -

see Note (ii) on page 14) your Reference

Salary calculated at the date of your

death, will be available to secure a

pension for your Dependant(s).

Retirement Account

The value of the units held in your

retirement account will be used to

secure a pension for your Dependant(s),

or paid as an additional lump sum.

Death-in-Service after

Normal Retirement Age

If you die in service after your Normal

Retirement Age, the value of the units

held in your retirement account will

be payable as a lump sum, subject to

the Lifetime Allowance.


Payment of Lump Sum Life

Assurance Benefits on Death

Lump sum death benefits may be

paid by the Trustees, at their

discretion, to any one or more of a

wide class of beneficiary that includes

your relatives, dependants, and

persons who are beneficiaries under

your will or estate.

Paying the benefit in this way allows

it to be paid promptly, and normally

free of inheritance tax.

You can notify the Trustees of your

chosen nominees by completing a

Beneficiary Nomination Form

(available on the Pensions Intranet

site or from The Pensions Team).

However, you should note that as the

benefit is discretionary, the Trustees

cannot be bound by your wishes.

If your personal circumstances

change and you wish to alter your

nomination, a new form can be

obtained from the Pensions Intranet

site or The Pensions Team (see page

20 for contact details).

Notes

(i) Life Assurance - as part of Flex ChoiceS

you can elect a lump sum life assurance

benefit of 2, 3 or 4 times your Reference

Salary (up to the Plan Cap). If not

eligible for Flex ChoiceS you will

automatically be covered for a benefit

of 4 times your Reference Salary (up to

the Plan Cap).

(ii) Dependants’ Pension - as part of Flex

ChoiceS you have the choice to elect a

further lump sum to secure a pension

for your Dependant(s) if you should die

in service. You can elect 1, 2, 3 or 4

times your Reference Salary (up to the

Plan Cap) or choose not to elect this

benefit at all (in which case no

Dependants’ pension would be payable

if you die in service).

If you are not eligible for Flex ChoiceS

you will automatically be covered for a

benefit of 4 times your Reference Salary

(up to the Plan Cap) if you join the Plan.

(iii) Cover for the life assurance and

Dependants’ pension benefits will be

subject to the requirements of the

insurer selected by the Trustees to

provide these benefits. Where medical

evidence is required, cover for these

benefits may be restricted or

unavailable until satisfactory details

have been received and assessed by

the underwriters.

(iv) If you are temporarily absent from

work the relevant provisions of Section

8 will apply.

(v) In certain circumstances, the amount

of the benefit payable as a lump sum

on death-in-service may be restricted

by Plan Limits. However, any part of the

benefit which cannot be paid as a lump

sum may be used to provide a pension

for your Dependants.

(vi) It may also be necessary in certain

circumstances to limit the amount of

your Dependants’ pension to comply

with Plan Limits.

(vii) All lump sum death benefits are subject

to the Lifetime Allowance. Any lump

sum death benefits paid in excess of

the Lifetime Allowance will be taxed.

The current rate of tax is 55%.

For further information about Flex ChoiceS

please refer to the HR Intranet or contact

HR Service Delivery on 762 8701 (internal)

or 01667 458701 (external).


8. Temporary Absence and Changes in Working Hours

Temporary Absence

General

If you are temporarily absent from

work, for a reason other than

sabbatical, you will continue to be

covered for:

• life assurance benefits (see Section 7.

Benefits on Death-in-Service)

and

• Dependants’ pension benefits (see

Section 7. Benefits on Death-in-Service)

which are subject to the requirements of

the insurer selected by the Trustees and

the level of cover you have selected.

Maternity Leave (including adoptive

leave in the case of a child less

than 12 months old)

If you are on maternity leave you will

continue to be covered for:

• life assurance benefits (see Section 7.

Benefits on Death-in-Service)

and

• Dependants’ pension benefits (see

Section 7. Benefits on Death-in-Service)

for the full period of absence and

subject to your Flex ChoiceS

elections. This period will be treated

as Pensionable Service and the

benefits calculated as if you had been

working normally.

Although the contributions you are

normally required to pay to the Plan

are based on Pensionable Salary,

whilst on maternity leave you are only

required to pay contributions based

on the actual pay you receive.

If your pay is insufficient to fund

your normal contributions (based

on your Pensionable Salary prior to

your maternity leave), the Company

will fund any difference during

such periods, but only in respect of

Total Basic Contributions (see page 7

for details).

If you have elected to pay Fixed

Additional Contributions or Variable

Additional Contributions and you feel

that you cannot afford to maintain

these contributions during your

maternity leave, you can call the

HR/Payroll Helpdesk on 762 8701

(internal) or 01667 458701 (external)

to reduce your contributions to Total

Basic Contributions only.

Entering or returning from any period of significantly reduced

pay constitutes a Flex ChoiceS Lifestyle Event. You should

contact the HR Service Delivery on 762 8701 (internal) or

01667 458701 (external) to review your benefit elections,

including pension contributions (as described below) as you

may be receiving insufficient pay to fund them all.


If you decide not to return to work,

your membership of the Plan will

cease either at the end of the month

in which you leave the Company or

at the end of the previous month,

depending on the day of the month

in which you leave.

Unpaid Leave (including dependants’

and parental leave and adoptive

leave in the case of a child over 12

months old)

If you are on one of the above types

of leave, similar provisions to those

on maternity leave will apply to both

males and females.

Sabbatical

A sabbatical is a period of agreed

unpaid absence in excess of three

months. Shorter unpaid absences are

defined as unpaid leave. If you are on

a sabbatical you will not be covered

for the life assurance and Dependants’

pension benefits covered in Section 7.

Benefits on Death-in-Service. Also, all

the contributions paid on your behalf

will cease during your absence.

Unpaid Sick Leave

If you are no longer in receipt of

Company sick pay, but have not yet

reached the point where any claim

for Salary Security / Long Term

Disability pay may be paid, your

contributions will be based upon

Pensionable Salary and funded by

the Company, but in respect of Total


If you have elected to pay Fixed

Additional Contributions or Variable

Additional Contributions and cannot

afford to maintain this level during

unpaid sick leave, you should call the

HR/Payroll Helpdesk on 762 8701

(internal) or 01667 458701 (external)

to reduce your contributions to Total


Part-Time

If you switch from full-time to part-

time employment or vice versa during

a Plan year, your contributions will

be based on your revised Pensionable

Salary from the first day of the month

following the point of change, then

on your Pensionable Salary at each

subsequent 1 April.


9. General Information

Constitution

The Plan is constituted by a Trust

Deed and is administered in

accordance with the Rules, by and on

behalf of the Trustees. The Trust Deed

and Rules is available for inspection

on request. Alternatively, a copy can

be made available for your personal

use, although a charge is made to

cover the actual cost of providing this.

This booklet contains an outline of

the Plan, but the full provisions are

set out in the Trust Deed and Rules.

In the event of any doubt, the latter

will prevail.

Trustees’ Report & Accounts

Details of the Trustees and their

advisers, as well as the Plan’s audited

accounts, are published annually in

the Trustees’ Report, a copy of which

is available on request.

HM Revenue & Customs (HMRC)

HM Revenue & Customs (HMRC)

originally approved the Plan under

Chapter I Part XIV of the Income and

Corporation Taxes Act 1988. One of

the conditions of approval was that

the benefits should not exceed HMRC

limits. These limits have now been

adopted as Plan Limits. The Plan is

now registered under Chapter II of

Part IV of the Finance Act 2004.

Title to Benefits

All benefits under the Plan are

personal and cannot be assigned or

offered as security for a loan.

Amendment or Termination

While the Principal Employer intends

to continue the Plan indefinitely, it

reserves the right to amend or

terminate the Plan at any time, in

accordance with the provisions of the

Trust Deed and Rules. The Trustees

also have the power to amend the

Plan. You will be notified in writing of

any changes which affect you.

If the Plan is terminated, your

retirement account will remain

invested until such time as it is used

to provide benefits for you and any

dependant(s).

Change of Address

It is your responsibility to ensure

that the Trustees are informed if

your home address changes.

Otherwise, they will not be able to

contact you about the Plan or make

the appropriate payments when you

reach your Normal Retirement Age.


Data Protection Act 1998

The Data Protection Act 1998 has

strict guidelines on how data should

be collected, processed, disclosed and

stored. The Act covers the Plan

because personal data (such as

names, addresses, salaries) is held in

respect of each member. The Trustees

are registered with the Data

Protection Commissioner and have

declared that the personal data held

in respect of members is used only

for the purposes of calculating and

providing members’ benefits and for

the efficient running of the Plan. The

processing of this data is carried out

on behalf of the Trustees by the Plan’s

third party administrator and the

Plan’s advisers. Members are entitled

to see any data that is held in respect

of them, unless in providing this

data other parties’ data would be

disclosed. A charge may be made in

some circumstances for the cost of

supplying this information.

Internal Dispute

Resolution Procedure

In accordance with the requirements

of Section 50 of the Pensions Act

1995, the Trustees have implemented

an Internal Disputes Resolution (IDR)

procedure. The IDR procedure must

normally be followed before the

Pensions Ombudsman will accept

a case. The procedure covers only

disputes between the Trustees and

any active, deferred or pensioner

member, the spouse or dependant

of a deceased member, prospective

member or anyone who claims to

be or to represent such a person.

Disputes between the employer and

members of the Plan are outside the

IDR procedure.

The IDR Procedure

The procedure is in two stages. The

first stage involves arbitration by a

person appointed by the Trustees.

The second stage involves direct

reference to the Trustees.

The Trustees have appointed the

Group Pensions & Benefits Manager

as arbitrator, from whom full details

of the procedure and the appropriate

forms for completion in the event of

a complaint can be obtained.

If you have a complaint about any

aspect of the Plan, you (or your

representative) can write to the Group

Pensions & Benefits Manager at:

The Pensions Team

Capgemini

No. 1 Forge End

WOKING

Surrey

GU21 6DB

Whenever you write, you must give

your name, address, date of birth,

National Insurance Number and full

details of your complaint, together

with as much background information

as possible. The Trustees must ensure

that you receive a written reply within

2 months of having received your

complaint. The reply will state the

decision that has been made in

response to your complaint. If it is not

possible to give you a full written

reply within the 2 month period, you

will be provided with an interim

response, stating the reason for the

delay and giving a date by which the

full response will be available.

If you do not agree with the decision

given, you should write to the

Chairman of the Trustees, c/o

The Pensions Team (see above),

requesting a review of the decision

by all the Trustees. You must do this

within 6 months of the decision and


The Pensions Ombudsman oversees disputes between individuals

and Trustees or managers of an occupational or personal pension

scheme, which cannot otherwise be resolved.

send a copy of the decision (together

with your name, address, date of birth

and National Insurance Number),

giving your reason(s) for disagreeing

with it. After considering your appeal,

the Trustees must either confirm the

earlier decision or replace it with a

new decision. They must do this

within 2 months of receiving your

letter or provide you with a written

interim response, stating the reason

for the delay and giving a date by

which the full reply will be available.

The written reply from the Trustees

will also provide details of your right

to take up your complaint with The

Pensions Advisory Service (TPAS) and

the Pensions Ombudsman (and their

contact details) if you disagree with

the Trustees’ decision.

Pension Provision on Divorce orDissolution of Civil Partnership

Legislation now provides for a number

of options which may be exercised

by members and their ex-spouses /

ex-civil partners in the event of

divorce/dissolution of civil partnership,

respectively. The cost of administration

will be borne by members and/or

their ex-spouses or ex-civil partners

(as appropriate), either by a direct

charge or by reducing the value of the

member’s retirement account. Details

are available from the Capgemini

PENSIONS HELPLINE (see page 20

for contact details).

Other Sources of Advice or Assistance

TPAS (The Pensions Advisory Service)

TPAS is an independent voluntary

service, which provides free help and

advice to members and other

beneficiaries of occupational and

personal pension schemes. TPAS

offers a voluntary conciliation service,

enabling individuals and trustees, or

managers of occupational or personal

pension schemes, to (a) resolve

grievances relating to pension matters

which cannot be directly resolved by

the parties concerned and (b) assist in

connection with any pension queries.

If you have any problems concerning

your Plan benefits that cannot be

resolved through the IDR procedure,

you can contact TPAS at:

TPAS

11 Belgrave Road

London

SW1V 1RB

Telephone: 0845 601 2923

or through your local Citizens Advice

Bureau. TPAS can also assist you in

taking a problem through the IDR

Procedure.

Pensions Ombudsman

The Pensions Ombudsman oversees

disputes between individuals and

Trustees or managers of occupational

or personal pension schemes, which

cannot otherwise be resolved, and is

able to investigate and decide in cases

where maladministration is alleged.

The Pensions Ombudsman also deals

with disputes of fact or law including

the interpretation of the Rules of the

Plan. Any decision made will be legally

binding on all parties concerned,

except that an appeal on a point of law

may be made to the High Court.

The Pensions Ombudsman should

only be contacted if TPAS has been

unable to settle the dispute.

The contact address is:

Pensions Ombudsman

11 Belgrave Road

London

SW1V 1RB

Telephone: 020 7834 9144

Pension Tracing Service

If you think you may have an ‘old’

pension, but are not sure of the

details, the Pension Tracing Service

can usually help by tracing it for you.


Flex ChoiceS: If you have any questions regarding the Capgemini

Flexible Benefits Programme, please contact the HR Service

Delivery on 762 8701 (internal) or 01667 458701 (external).

It can be easy to lose contact with a

previous employer’s pension scheme,

especially if you change jobs a number

of times throughout your working life.

The Pension Tracing Service has

access to a database of over 200,000

occupational and personal pension

schemes. It can be used, free of

charge, to search for a scheme, and

may be able to provide you with an

up-to-date contact address.

Pension Tracing Service

The Pension Service

Tyneview Park

Whitley Road

Newcastle upon Tyne

NE98 1BA

Telephone: 0845 600 2537

The Pensions Regulator

The Trustees have given information

about the Plan, including a contact

address, to the Registrar of Pension

Schemes.

The Pensions Regulator is able to

intervene in the running of schemes

where employers or professional

advisers have failed in their duties

and in certain circumstances. The

contact address is:

The Pensions Regulator

Napier House

Trafalgar Place

Brighton

East Sussex

BN1 4DW

Telephone: 0870 606 3636

Further Information

For any further information, in the

first instance please contact:

Capgemini PENSIONS HELPLINE

@ Xafinity Consulting

on 0870 241 4502

E-mail address: capgemini.pensions

@xafinityconsulting.com

Capgemini UK Pension Plan

Xafinity Consulting

Xafinity House

42-62 Greyfriars Road

Reading

RG1 1NN

Any further information can be

obtained from:

The Pensions Team

Capgemini

No. 1 Forge End

Woking

Surrey

GU21 6DB

The following documentation is

available on the Pensions Intranet site:

• Beneficiary Nomination Form (to

inform the Trustees of the person(s)

you would like to receive the lump

sum death benefit)

• Dependant Nomination Form (to

inform the Trustees of your chosen

dependant(s) on your death – if

applicable (see Note (ii) on page 14)

• Copy of this Plan booklet

• Form of Authority (for transferring-

in pension benefits from previous

pension arrangements)

• Fixed Contributions Form (if you

are not eligible for Flex ChoiceS)

• Variable Additional Contributions

Forms for monthly and/or one-off

payments if you are not eligible for

Flex ChoiceS

• Investment manager website links

to the available investment funds

All the above forms and this

explanatory Plan booklet can be

downloaded.


A wide range of investment funds is available, on a

passively or actively managed basis, and you may

choose either one fund or a combination of funds.

10. Investment Fund Choices

You are able to invest in any

or all of the following types

of fund:

Lifestyle Unit-Linked Funds –

Passive Management

The Lifestyle Fund approach invests

on a passive (index-tracking) basis in

funds managed by Legal & General.

For most of your working life, your

pension fund will be invested in

equities, gradually switching into

bonds and cash as you approach your

Normal Retirement Age.

The funds chosen for the Lifestyle

Fund strategy are as follows:

• Global Equity Fixed Weights

(60:40) Index Fund

• Over 15 Year Gilts Index Fund

• Cash Fund

This is the option that will be chosen

for you if you do not make a specific

choice yourself.

Unit-Linked Funds –

Passive Management

Passive investment management (or

‘index-tracking’) is expected to

reproduce the performance of a

specific stock market index. It will

therefore represent the combined

performance of all the companies

listed within the index. The funds

available include both those under the

Lifestyle Fund strategy and the funds

listed below. All the passive funds are

managed by Legal and General.

• Global Emerging Markets Equity

Index Fund

• Ethical Global Equity Index Fund

• Europe (ex UK) Equity Index Fund

- GBP Currency Hedged Fund

• Japan Equity Index Fund - GBP

Currency Hedged Fund

• North America Equity Index Fund -

GBP Currency Hedged Fund

• UK Equity Index Fund


Active Management

The aim is to produce greater gains

than the passively managed (index-

tracking) approach, but there is a

higher risk level and greater volatility

in individual years. However, this

approach gives the investment manager

greater freedom in deciding how to

invest. The range of unit-linked funds

available for investment are:

• Balanced Fund - Aberdeen Asset

Management and Fidelity

Investments

• Global Equity Fund - Aberdeen

Asset Management and Fidelity

Investments

• UK Equity Fund - Aberdeen Asset

Management and Fidelity

Investments

• Overseas Equity Fund - Aberdeen

Asset Management and Fidelity

Investments

• Property Fund - Legal and General

With-Profits Fund

A with-profits fund is a relatively low

risk investment effected through an

insurance contract, in this case with

Prudential. Investment returns are

smoothed over the longer term,

providing a degree of protection

against significant short-term market

fluctuations.

Your Investment Fund Options

Lifestyle Unit-Linked Funds –

Passive Management

This is the option that will be chosen

for you if you do not make a specific

choice yourself. However, you will have

the option to change your investment

selection twice a year, with effect from

each 1 April and/or 1 October.

With hindsight it would be possible

to pinpoint when most advantageous

to invest in equities, fixed interest,

property or cash. To predict the

turning points, however, is extremely

difficult and there is just as much risk

in being too conservative as in being

too aggressive.

The objective of a Lifestyle Fund

approach is to maximise expected

investment returns in the earlier years

of your working lifetime, by investing

mainly in equities, and then to lock

in these gains by gradually and

automatically moving from a growth

phase to a retirement income phase

as you near retirement.

The Trustees have decided that for the

Lifestyle Fund approach investments

are on a passive (index-tracking) basis,

in funds managed by Legal & General.

For most of your working life your

pension fund will be invested in

equities, gradually switching into bonds

and cash as you near your Normal

Retirement Age (see table opposite).

The funds chosen for the Lifestyle

Fund strategy are as follows:

• Legal & General Global Equity

Fixed Weights (60:40) Index Fund

for long term growth, building up the

value of your pension fund

This fund invests in worldwide equity

markets, 60% in the UK and 40%

overseas. The fund is made up of Legal

& Generals’ passive funds for each

region, and each is designed to track

the performance of the regional index.

Because it follows the rise and fall of

each stock market, by investing in this

fund there may be times when the

value of your fund falls; but historically

over the longer-term, equities have

consistently outperformed other

investments such as bonds and cash.


Years Prior to Global UK CashNormal Equities Bonds

Retirement Age

10 or more 100%9 90% 10%8 80% 20%7 70% 30%6 60% 40%5 50% 50% 4 40% 55% 5%3 30% 60% 10%2 20% 65% 15%1 10% 70% 20%0 75% 25%


• Legal & General Over 15 Year

Gilts Index Fund

to protect the value of your pension

fund as you near retirement

This fund invests in UK government

bonds. These are securities offered by

the government which pay a fixed

rate of interest over the period for

which they are held, although their

capital value changes with market

conditions.

They are a relatively low risk

investment compared with equities

and should be used to protect the

value of your accumulated fund as

you near retirement. They also offer a

degree of protection against changes

in annuity prices (an annuity is the

policy purchased at retirement with

the amount accumulated in your

retirement account and which

provides your monthly income).

• Legal & General Cash Fund

to provide security of capital close

to retirement

This fund invests in cash deposits and

other short-term investments, with

competitive rates of interest, and is

designed to protect the value of your

accumulated fund immediately prior to

retirement. Upon retirement (under

current legislation) you can take part of

your pension benefit as a tax-free cash

sum, so it is appropriate that there is an

element of cash exposure built-up in

the years nearing retirement, in

addition to the annuity protection.


Passive Management

In addition, the following funds are

available outside the Lifestyle Fund

option:

• Legal & General Global Emerging

Markets Equity Index Fund

for long term growth, building up the

value of your pension fund with

expected higher levels of volatility

This fund invests in worldwide

emerging equity markets. The fund is

designed to track the performance of

the S&P/IFC Investable Composite

Global Emerging Markets Index. The

fund is part of the family of Legal &

General’s passive equity fund range.

Because equities are sensitive to

movements in the economy, they

can demonstrate significant short-

term volatility. Emerging markets and

their currencies can be extremely

volatile. Emerging markets are

particularly venerable to global

economic downturns / crises and

hence there is a higher level of risk

associated with the fund. However,

over the longer-term, equities have

consistently outperformed other

investments such as bonds and cash.

• Legal & General Ethical Global

Equity Index Fund

for long-term growth, building up the

value of your pension fund for the

ethically minded investor

This fund invests in UK companies

which take account of ethical,

environmental or social principles

as defined by the FTSE4Good UK

Index. The FTSE4Good UK Index


completely excludes companies

which are significantly involved in

tobacco, the manufacture of weapons

systems or strategic parts, operators

of nuclear power stations or those

which mine uranium. The fund is

part of the family of Legal & General’s

passive equity fund range. Because

equities are sensitive to movements

in the economy, they can demonstrate

significant short-term volatility, by

investing in this fund there may be

times when the value of your fund

falls. However, over the longer-term,

equities have consistently

outperformed other investments such

as bonds and cash.

• Legal & General Europe (ex UK)

Equity Index Fund -

GBP Currency Hedged



This fund invests in European equity

markets, excluding the UK. The fund

is designed to track the performance

of the FTSE World Europe (ex UK)

regional Index on a currency hedged

basis. The fund offers the opportunity

to access one of the main four

overseas regional equity markets.

The fund is part of the family of Legal

& General’s passive equity fund

range. Because it follows the rise and

fall of each stock market, by investing

in this fund there may be times

when the value of your fund falls. As









as bonds and cash.

• Legal & General Japan Equity

Index Fund - GBP Currency

Hedged


value of your pension fund, offering

the opportunity to invest in Japan

This fund invests in the Japanese

equity markets. The fund is designed

to track the performance of the FTSE

World Japan Index on a currency

hedged basis. The fund offers the

opportunity to access one of the

main four overseas regional equity

markets. The fund is part of the

family of Legal & General’s passive

equity fund range. Because equities

are sensitive to movements in the

economy, they can demonstrate







as bonds and cash.

• Legal & General North America

Equity Index Fund - GBP

Currency Hedged

for long-term growth, building up

the value of your pension fund,

offering the opportunity to invest in

North America

This fund invests in the North

American equity markets. The fund is

designed to track the performance of

the FTSE World North America Index

on a currency hedged basis. The fund

offers the opportunity to access one

of the main four overseas regional

equity markets. The fund is part of

the family of Legal & General’s

passive equity fund range. Because









outperformed other investments

such as bonds and cash.

• Legal & General UK Equity

Index Fund



This fund invests in the UK equity

market. The fund is designed to track

the performance of the FTSE All Share

Index. Because equities are sensitive to

movements in the economy, they can

demonstrate significant short-term

volatility, by investing in this fund

there may be times when the value of

your fund falls. However, over the

longer-term, equities have consistently


as bonds and cash.


Active Management

• Balanced Funds



Balanced funds invest in a broad

range of equity and bond markets,

both in the UK and overseas, and

have a small cash exposure. They are

designed to capture the benefits of

investing in stock markets, whilst

diversifying through holdings in

bonds and cash. Just over half of the

fund is invested in UK companies,

about one-quarter in overseas

companies and the rest in bonds

and cash.

- Aberdeen Life Multi-Asset

(ex Property) Fund Objective:

To perform +1.0% p.a. ahead of

the average managed fund, as

measured by CAPS Limited, over

three year periods.

- Fidelity Life Long Term Growth

Fund Objective: To outperform

the average managed fund, as

measured by CAPS Limited.

• Global Equity Funds



These funds invest in worldwide

stock markets and have a small

cash exposure. They are designed

to capture the benefits of investing

in the UK stock market, whilst

diversifying through holdings in

overseas companies. Half of the fund

(60% for Fidelity) is invested in

UK companies, the rest in overseas

companies with a small amount

in cash.

- Aberdeen Life Global Growth

Fund Objective: To perform

+1.0% p.a. ahead of a composite

benchmark of regional UK and

overseas stock market indices.


- Fidelity Life Global Equity (60/40)

Fund Objective: To outperform a

composite benchmark of regional UK

and overseas stock market indices.

• UK Equity Funds



These funds invest in UK listed

companies. These will include both

large companies such as Vodafone

and BP, as well as smaller companies.

Performance of the fund will vary

according to the expectations of the

future prospects for the UK economy at

any particular stage, and the manager’s

ability to pick those companies which

will benefit accordingly.

- Aberdeen Life UK Growth Fund

Objective: To perform +1.0% p.a.

ahead of the FTSE All Share Index

over three year periods.

- Fidelity Life UK Equity Fund

Objective: To outperform the FTSE

All Share Index.

• Overseas Equity Funds



These funds invest in North

American, European (excluding UK)

and Asia Pacific (including Japanese)

listed companies. They are not

invested in UK listed companies.

- Aberdeen Life Global (ex UK)

Equity Fund Objective: To perform

+1.0% p.a. ahead of a composite

benchmark of regional overseas

stock market indices over three

year periods.

- Fidelity Life International Equity

Fund Objective: To outperform the

composite benchmark of regional

overseas stock market indices.

• Property Fund



This fund invests in UK commercial

property. The fund is designed to

exceed the median return for similar

commercial property funds in

performance tables. The fund requires

active management due to the nature

of directly owning commercial

property and hence differs in this

respect to Legal & General’s passively

managed fund range. Commercial

property can demonstrate some

volatility due its sensitivity to

movements in the economy. However,

over the longer-term, commercial

property has consistently outpaced

inflation and lower risk investments

such as bonds and cash.

With-Profits Fund

The fund invests in a broad range of

assets, similar to those in which

balanced managed unit-linked funds

are invested. Unlike unitised funds

however, instead of giving a return on

the investment directly related to the

performance of the fund, returns are

distributed by way of bonuses which

are generally declared annually. Bonus

structures vary with providers. It is


not uncommon for the bonus to have

two parts: the annual reversionary

bonus which is guaranteed to the

investor once declared, and the

terminal or discretionary bonus which

is added to the fund upon withdrawal.

• Prudential With-Profits Fund

The Trustees have decided to offer

the Prudential with-profits fund as

an alternative investment option

for members.

Prudential offers returns for with-

profits investors through a

combination of reversionary bonus

rates and terminal bonuses. Terminal

bonuses are dependent on the number

of years invested in the fund and are

not guaranteed. The terminal bonus is

the ‘top-up’ that represents the excess

earned after smoothing. The level of

this bonus may be reviewed at any

time to reflect changes in the value of

the with-profits fund and to take into

account the recent performance of

investment markets.

Any Combination of the

Above Funds

You have several options for the way

in which the pension contributions

paid into your DC Section retirement

account can be invested. You can let

the investment strategy be determined

for you or you can choose your own

personal investment strategy.

If you do not wish to choose your

own investment strategy, all the

contributions paid on your behalf

will automatically be invested in

the Lifestyle Fund.

Alternatively, you can actively

select any combination of the

investment funds available, for the

investment of all the contributions

paid on your behalf.

Investment Charges

Each of the companies offering the

above investment options, makes a

charge for the investment management

responsibilities carried out. These

charges are automatically deducted

from the unit prices calculated for each

fund (or the fund value for the with-

profits fund) and you do not need to

pay anything separately. The charges

will vary from fund to fund depending

on the extent of the investment

management responsibilities necessary

to manage the fund. For example, they

will be lower for the passively managed

bond fund compared with the actively

managed international equity funds.

Details of these charges are given with

other fund-related details on the web

links to each investment management

organisation and you should refer to

these for details. The web links are

available via the Pensions Intranet site.


About Legal & General

Legal & General Investment

Management is one of the three core

business units of Legal & General

Group Plc, a public company whose

shares are quoted on the London

Stock Exchange. Legal & General

have assets under management of

approximately £270 billion. In 1985,

Legal & General were one of the

first UK fund managers to start

researching index fund techniques.

There are a number of different

approaches to indexation, and Legal

& General have opted for a method

known as stratified sampling. This

involves fully replicating the index

weightings of all the major stocks. For

example, if in the UK Equity Index

portfolio BP represents 7% by value

of the FTSE All Share Index, then it

will represent the same amount of the

Legal & General portfolio. The

smaller companies are sampled on a

random basis.

About Aberdeen Asset Management

Aberdeen Asset Management (AAM)

is a UK based company focused solely

on asset management. Founded in

1983, the company has grown

through acquisition over the past

twenty plus years and now manages

approximately £95 billion of assets for

clients worldwide.

AAM acquired certain parts of the

Deutsche Asset Management UK

business in 2005, meaning that the

funds under the Plan previously

managed by Deutsche transferred to

AAM and are now branded as

Aberdeen Life funds.

AAM have a different approach to

investment from Deutsche, however

as an active manager they will seek to

outperform the market, as Deutsche

did previously.

About Fidelity Investments

Fidelity Investments is an American

organisation, founded in Boston in

1946, with current global assets of

approximately £150bn. Fidelity

Pensions Management (FPM) was

formed in 1986 as a dedicated UK

pension fund manager. Fidelity

launched their Defined Contribution

service in 1994 and the funds

available to members form part of

their range of life funds. Fidelity's

investment process is underpinned by

extensive company research that is

carried out by analysts, of which there

are around 250 worldwide. Fidelity

take a ‘bottom-up’ approach to

portfolio construction (an approach

where portfolios are constructed and

run on the basis of the attractiveness

of individual stocks), which is a

reflection of the emphasis they place

on research. The three most important

attributes of a company for Fidelity

are financial strength, the quality of

management, and its products.

About Prudential

Established in 1848, Prudential plc is

an international financial services

company. In the UK Prudential is a

significant life and pensions provider

with around seven million customers.

M&G was acquired by Prudential in

1999 and is the Group's UK and

European fund manager, responsible

for managing over £164 billion (as at

31 December 2006).


State Scheme Pensions

Your total pension from the State may

comprise a number of elements, the

main ones of which are:

• Basic State Pension (BSP) which is

subject to the payment of the requisite

National Insurance Contributions. If

you are unsure whether or not you

have a full entitlement, The Pensions

Team can help you check your

National Insurance records with the

National Insurance Contributions

Office, or you can complete and

submit a Pensions Forecast Form,

BR19, which is available from the

Department for Work and Pensions

(DWP), formerly the DSS

• State Earnings Related Pension

Scheme (SERPS) which was in

force between 6 April 1978 and

5 April 2002

• State Second Pension (S2P) which

was introduced from 6 April 2002.

It is paid from State Pension Age in

addition to the Basic State Pension,

subject to payment of the requisite

National Insurance Contributions.

It is related to your earnings

between the Lower Earnings Limit

(LEL) and the Upper Earnings Limit

(UEL) throughout your working life

Contracting-Out of S2P

Your membership of the Plan is not

contracted-out, which means that the

Plan benefits are payable in addition

to State scheme benefits. You pay full-

rate National Insurance contributions,

part of which represents the

contributions to the State schemes.

However, Plan members can decide,

on their own initiative, to ‘contract-

out’ of S2P via an appropriate

personal pension. If you do this, you

effectively pay reduced National

Insurance contributions (and S2P

benefits cease to accrue) as the saving

in National Insurance contributions is

invested as ‘Protected Rights’ in your

chosen pension arrangement with an

external provider after the end of the

tax year. The benefits arising from

these rights must be used to buy a

pension for yourself at retirement (but

no earlier than age 60) which must

increase in line with Limited Price

Indexation (LPI) i.e. at the rate of 5%

or in line with Inflation if less. Upon

your death the pension must continue

at a rate of 50% to your spouse. The

question of whether or not to

‘contract-out’, is entirely a personal

one. If you are in any doubt, you

should consider taking independent

financial advice.

11. State Pension Scheme andContracting-Out


The Capgemini Group is one of the

largest management and IT

consulting organisations in the

world. The company offers

management and IT consulting

services, systems integration, and

technology development, design

and outsourcing capabilities on a

global scale to help businesses

continue to implement growth

strategies and leverage technology.

The organisation employs around

65,000 people worldwide and

reported 2005 global revenues of

more than 6.954 billion euros.

More information about individual

service lines, offices and research

is available at www.capgemini.com


www.capgemini.com

Capgemini UK plc

No. 1 Forge End

Woking

Surrey

GU21 6DB

Tel: 01483 764764

Fax: 01483 786161

Cap

gem

ini U

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2 -

0408

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