Welcome!

Defined Contribution Section

KIMBERLY-CL ARK

INVESTING IN YOUR FUTURE

DC Scheme

DB Scheme

Combined

KIMBERLY-CL ARK

INVESTING IN YOUR FUTURE

KIMBERLY-CL ARK

INVESTING IN YOUR FUTURE

We’re delighted that you have decided to join Kimberly-Clark and we hope you have a long and happy working life with us. And, when you decide it’s time to stop working, we want you to also have a long and happy ‘non-working’ life, too.

This leaflet introduces to you to our pension

scheme. It’s a good one, with generous Company

contributions to help you save for your future,

and valuable death-in-service benefits for peace

of mind.

You’ll need to consider a few things before you

make any choices, like:

• how much you’ll need to live on in retirement

• what you can afford to put away now for the

future, and

• how you want to invest your money in the meantime.

This leaflet should help you figure out some of these important decisions and how our pension scheme can help. So please read it carefully to understand just what our pension scheme offers you.

Whatever you pay,

Kimberly-Clark pays more

Tax relief means that

every £1 you pay into the pension wil l only cost

you 80p (or less)

You can choose to pay (% of eligible earnings)

K-C pays (% of eligible earnings)

Total going into your pension (% of eligible earnings)

3 4 7

3.5 5 8.5

4 6 10

4.5 7 11.5

5 8 13

5.5 9 14.5

6 10 16

6.5 11 17.5

7 12 19

You choose how much you want to contribute to your pension and Kimberly-Clark will more than match this amount, up to 12% of eligible earnings. The table below shows your choices, and what Kimberly-Clark will also pay:

Contributions

SMART Pension For most members, contributions (including Additional Contributions) are automatically paid through

SMART Pension. This is a way of paying your pension contributions that means you end up paying less

National Insurance, which helps your money go even further. SMART Pension is a ‘salary sacrifice’

arrangement run by the Company.

By using SMART Pension, you don’t pay contributions. Instead, you agree to give up part of your basic

salary. In return, the Company will pay an amount equal to your pension contributions into the Scheme,

as well as its own contributions. By paying contributions in this way, both you and the Company pay less

National Insurance, and your take-home pay will be higher.

You can opt out of SMART Pension if you want. We will automatically take you out of SMART Pension if it

takes your eligible earnings below the Lower Earnings Limit (currently £5,824 a year), which means you

could potentially be worse off.

To find out more about SMART Pension, take a look at the member booklet:

http://kc.xpmemberservices.com/Scheme-Info/Scheme-Guide.aspx

2

Additional Contributions You can pay more than 7% of your eligible earnings

into your pension. These Additional Contributions

won’t be matched by the Company but they still

benefit from tax relief.

InvestmentsContributions to the Scheme are paid into an individual pension account set up for you, and the money is invested, with aim of making your pension savings grow more quickly.

A great thing about the Scheme is that you can choose how to invest your contributions. The pension

savings you have available when you retire will depend on how much your account grows over the years,

based on the performance of your investments.

A range of investment funds is available so you can choose how to invest your account. There are two

different approaches, depending on whether you prefer to make your own investment decisions (Self-

select) or whether you prefer a more ‘hands-off’ approach (Lifecycle). First, decide which strategy you

think suits you. You can choose either Self-select or Lifecycle, not a mix. But you can change your

investments choices at any time during your working life.

LifecycleLifecycle provides a ready-made mix of funds, which automatically changes as you near retirement

(normally age 65). It is pre-programmed to reduce your investment in more volatile funds (such as equities)

in favour of less volatile funds (such as bonds and cash) to help protect the value of your account in the

years leading up to your retirement.

Self-selectWith Self-select, you take control. You decide which of the nine funds to invest in, how much of your account to invest in each fund and when to change how your account is invested. The important thing is that you need to review your account regularly – for instance, you should consider less risky funds as you get near to retirement. Choosing the Self-select option is not a one-off decision.

On the next 2 pages, we have provided a quick overview of the funds that are available to you. If you would like to know more about the investment funds, then please contact Rochelle Baker (contact details on the last page).

Equity LifecycleHigher risk & volatility; higher potential growth

Equity Lifecycle invests wholly in equities

until you are 10 years from your Target

Retirement Age, with the aim of long-term

growth, although the returns may vary

along the way.

Mixed LifecycleLower risk & volatility; lower potential growth

The Mixed Lifecycle invests mainly in

equities but also in Government bonds to

give a steadier return and so switching

begins later, when you are 7½ years away

from your Target Retirement Age.

Choose your Target Retirement AgeWith Lifecycle, you can choose a Target Retirement Age (the trigger for when your account starts switching

gradually out of equity funds into bonds and cash funds). It can be any age from 55, and you can change

it when you like. If you do not choose a Target Retirement Age, it will automatically be set at your State

Pension Age (SPA).

You can choose from two Lifecycles:

OR

3

4

InvestmentsSelf-select funds

Fund name Invests in Aims to... Maybe suitable when you are...

Level of investment risk and volatility

AMC* % a year

Equities (Shares)

UK Equity Index UK company shares provide growth over the long term, in line with the returns of UK shares

early to mid career, some way from retirement, or closer to retirement if you plan to choose to ‘draw down’ income from your savings

High 0.10

World (ex-UK) Equity Index

overseas company shares

provide growth over the long term, in line with the returns of overseas shares

0.10

Currency Hedged Global Equity index (50% UK: 50% overseas)

shares of UK and overseas companies (overseas currencies hedged back to Sterling)

provide growth over the long term, in line with the returns of the chosen index

0.12

Emerging Markets Equity Index

shares of companies based in emerging market countries

provide growth over the long term, in line with the return of emerging market company shares

0.35

HSBC Amanah Global Equity Index Fund

shares of companies that meet Islamic investment principles

provide growth over the long term, in line with the returns of the Dow Jones Islamic Titans index

0.30

Bonds

Over 15 years Corporate Bond Index

bonds issued by companies

provide returns that match those of Sterling company-issued loans (corporate bonds)

approaching retirement and you expect to buy an annuity, or are prepared to give up some long-term return for smoother year-on-year performance

Medium 0.125

Over 15 years UK Gilt Index

government bonds issued with a long-term repayment period

provide returns that match those of government loans

0.10

Over 5 years Index Linked Gilt Index

provide returns to protect against inflation

0.10

Fund name Invests in Aims to... Maybe suitable when you are...

Level of investment risk and volatility

AMC* % a year

Cash

Cash – active cash investments which provide regular interest

help protect the capital value of your money, although not guaranteed to retain its value or increase in value

close to retirement (or drawing all or some of your benefits as cash)

Low 0.125

Mixed investments

Schroders Diversified Growth - active

a wide variety of investments including shares, bonds, private equity, property, currency and commodities

provide growth, comparable with equities, but is expected to provide smoother year-on-year returns than equities through different types of investment

early to mid career, some way from retirement

Medium to high

0.65

* The Annual Management Charge (AMC) is charged by the investment fund manager as a percentage of your fund value.

5

InvestmentsSelf-select funds (continued)

Any questions?Pensions Department The Pensions Department is also available to help with questions about the Scheme.

Email: Rochelle.N.Baker@kcc.com

Phone: 01732 594516

Address: Kimberly-Clark Limited, 1 Tower View, Kings Hill, West Malling, Kent ME19 4HA

HR Portal

Equiniti Pension Solutions You can also contact the Scheme’s administrators with questions about the investment funds on offer:

Phone: 01293 604085

Email: kimberlyclarkdc@equiniti.com

What if I need advice about my pension?

By law, the Trustees, the Company and the

Scheme’s administrators cannot give you

individual advice, and nothing in this leaflet

constitutes advice.

If you do need specific guidance, you should

speak to an Independent Financial Adviser (IFA).

Find an IFA by visiting www.unbiased.co.uk

What you need to do• Read this leaflet, then contact Rochelle Baker if you have any questions about joining the Scheme

and your choices.

• Decide on your contribution rate.

• Choose your investment approach.

• Fill in and sign the Application Form which can be downloaded from the HR Portal (see link

below). You should also complete a Nomination of Beneficiary Form.

• Return your completed forms to the Payroll department. You will see changes in your payslip

once your application has been processed.

Remember to review your account regularly to make sure your choices remain suitable. The pensions

website is provided by the Scheme’s administrators, Equiniti Pension Solutions, and can give you the

latest value of your account and how it is invested: https://mykcpension.equiniti.com/

There’s more information about the Scheme, its benefits, and your contributions and investment

choices on the website.

If you do nothing You will be automatically enrolled into the Scheme with a contribution rate of 3% and be invested in the

Equity Lifecycle with a Target Retirement Age of your State Pension Age.

6