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The Vodafone UK Defined Contribution Pension Plan

A pension is one way of helping you lead a comfortable lifestyle in retirement.

Your guide

Welcome to your guide to the Vodafone UK Defined ContributionPension Plan (the Plan). The Company is committed to providing excellent pension benefits and helping you to plan for your retirement.

Membership of the Plan is a valuable benefit. This bookletexplains the benefits the Plan provides and information on thedecisions you may need to make.

Work your way through the booklet by clicking the ‘next’ buttonor selecting a topic from the menu to the right.

Introduction

2 Introduction

Introduction 2 – 5- How the Plan works- Joining

Benefits 6 – 9- When you take your pension- Other benefits- If you leave

Costs 10 – 14- How are contributions made to the Plan?- How much will it cost me to join?- How can I increase my benefits?

Investments 15 – 17- Things to consider when choosingwhere to invest- Types of investment - Where can I invest?

Details 18 – 22- How the Plan is run- Disputes- Useful contacts- Glossary

Throughout the booklet thereare a number of technicalterms. We have explainedthese in the Glossary on page 22 to help you.

Three months after joining Vodafone you will beautomatically enrolled into the Plan.

1. ContributionsContributions to the Plan are normally made through salarysacrifice. This means that you ‘sacrifice’ (give up the right toreceive) a specific amount of salary based on yourcontribution rate. The Company then makes contributionsinto your Account in the Plan that incorporate your salarysacrifice and its matched contribution.

2. InvestmentsYou choose where to invest your Account from a number ofoptions. Depending on the performance of your investments,your Account could increase or decrease in value.

•Go towww.vodafonepensionsupdate.co.uk

•Watch the ‘How it works’ video.

How the Plan works

Totalcontributions toyour Account

£

Your salarysacrifice

Investment 1

£

Investment 2

Investment 3

£

£25%

tax-free lump sum

Option 1 Option 2 Option 3

75%used to buy a pension

25%tax-free lump sum

75%used to buy a drawdownarrangement

25%tax-free lump sum

75%as cash that is subject to income tax

Investmentperformance

1 2 3

Company’scontribution






3 How the Plan works

3. RetirementThe Plan has a Normal Retirement Age (NRA)of 65. You can retire up to 10 years beforethis, but please be aware the Government isincreasing the minimum retirement age, sothis may change when you reach NRA. Whenyou take your pension, the money in yourAccount will be used to buy benefits.

You have three options available to you:

• You can take up to 25% as a tax-free lumpsum and use the rest to buy a pension (orannuity) that will provide you with aguaranteed income for the rest of your life;

• You can take up to 25% as a tax-free lumpsum and use the rest to buy a drawdownarrangement where your fund remainsinvested (with a provider outside the Plan).You can withdraw income but the provideryou go with may charge you when you geta payment and for managing your funds; or

• You can take your account as a cash lumpsum. Here the first 25% is tax-free, theremainder is subject to income tax.

You can also choose a combination of these options.

If you need further information about theprocess, please contact Towers Watson.

How to find out more about the Plan:

http://www.vodafonepensionsupdate.co.uk/pension_info/vodafone_dc/videos

What if......I don’t want to be a member?You can opt out of the Plan, however, in line with legislation, Vodafone mayput you back into the Plan at least every three years.

...I have benefits in other pension arrangements?You may be able to transfer them into the Plan.

...I take a career break?If you are on paid leave from the Company, contributions to your Accountwill continue based on your pay at that time. If your leave is unpaid,contributions to your Account will stop, but you can leave your Accountinvested.

...I become ill and can’t work?You could receive an income of 50% of your Basic Salary (see page 8 formore information).

...I die whilst working for the Company?The Plan provides life cover, so your dependants would receive a lump sumof three times your salary. You can choose to increase your life cover to amaximum of eight times your Basic Salary by paying a small premium. Findout more on page 8.

...I have any questions?Vodafone Pensions looks after the day-to-day running of the Plan and isavailable to help answer any queries you may have about your Account.Contact details are on page 21.






4 How the Plan works

JoiningThe sooneryou start to save, the more you couldreceive whenyou retire.

What decisions can I make?You can choose:

• To join the Plan before you are automatically enrolled;

• How much you want to contribute; and

• Where to invest your contributions.

See the ‘Costs’ and ‘Investments’ sections for moreinformation.

If you do not make any choices you will automaticallysacrifice 2% of your Pensionable Salary each month andbe invested in the Cash Lifestyle fund.

What if I’m already a member of another pensionarrangement?You can join even if you are already contributing to anotherpension arrangement (subject to certain tax limits).

5 Joining

A pension is one way of helping you lead acomfortable lifestyle in retirement. Generally,the earlier you start making contributions,the better.

The amount of tax advantaged savings that youcan make into UK pensions is restricted by theAnnual and Lifetime Allowances. Both of theseare set by the Government. More informationabout these allowances can be found in the Q&Asection of www.vodafonepensionsupdate.co.uk

What happens if I opt out of the Plan?You will still be eligible for life cover of three times your Basic Salary.

Every three years, in line with government legislation,Vodafone will automatically re-enroll all employeeswho have opted out of the Plan.

When can I join?• You can join the Plan at any time.• The Plan is open to all employees over the age of 16

but under the age of 75.• Three months after you have joined Vodafone you will

automatically become a member of the Plan andsacrifice 2% of your Pensionable Salary each month.

Why should I join?The Plan is a cost-effective way to build up benefitsfor retirement because:

• The Company contributes to your Account –allowing you to significantly increase the amountyou could save on your own.

• You get tax relief and National Insurance (NI)savings through salary sacrifice – this means it costsyou less than you think.

• You receive other benefits including ill-healthbenefits and life cover.

The sooner you start to save, the more you couldreceive when you retire – because yourcontributions will be made for longer, investedfor longer and so have more of a chance to grow.



Costs 10 – 14- How are contributions made

to the Plan?- How much will it cost me to join?- How can I increase my benefits?

Investments 15 – 17- Things to consider when choosing

where to invest- Types of investment - Where can I invest?







Becoming a member of the Plan providesyou and your dependants with a numberof benefits. The pension benefits aresummarised in ‘How the Plan works’ onpage 3. In this section we give you moredetail about the additional benefitsavailable to you in the Plan.

Benefits

6 Benefits

When you take your pensionAt your Normal Retirement Age (65), you use the value of your Accountto buy a range of benefits.

You now have anumber of optionson retirement.

7When you take your pension






You can also choose a combination of these options.

Regardless of your choice, you will need to transfer your account to a provideroutside of the Plan.

Take your account as cashYou take your entireaccount as a cashlump sum. Here thefirst 25% is tax-free,the remainderbeing taxed at yourmarginal rate ofincome tax (forexample 20%, 40% or 45%).

Buy an annuityYou take up to25% as a tax-freelump sum, usingthe remainder tobuy an annuity,which will provideyou with anincome for therest of your life.

Buy a drawdownarrangementYou take up to 25% as atax-free lump sum,using the remainder tobuy a drawdownproduct from a provideroutside the Plan, whowill invest your fund onyour behalf. You thenwithdraw from itwhenever you choose.

You have 3 options

Life coverIf you die whilst employed by the Company, your dependant(s) will be eligible for a lump sum ofthree times your Basic Salary.

Increasing your life coverYou can choose to pay a premium to increase your life cover to a maximum of eight times yourBasic Salary.

You can update your life cover every 1 April. Remember that in any one year, the maximumincrease you are allowed is twice your Basic Salary.

Ill health benefitsIf you contribute to the Plan, you may be eligible for benefits under the Company’s Income ProtectionPlan. This covers you if you are unable to continue working, for a period of six months or more, due toserious ill health.

Providing you meet the insurer’s definition of ill health, you may be entitled to receive benefits of 50%of your Basic Salary. Ill health benefits will be paid in the same way as your salary for as long as youremain an employee of the Company and continue to meet the insurer’s definition of ill health. Youwill need to supply medical evidence from time to time to continue to claim this benefit. Thepayment of your benefits will stop when you reach Normal Retirement Age or you are considered tobe able to return to work, if earlier. Your ill health benefits will increase in payment, up to a maximumof 2.5% a year.

You can make changes to your level of life cover by visiting My Choices.

The Trustee has the final say about who receives benefits when you die, butthey will consider anyone you have nominated on your Expression of Wishform. Therefore, it is important that your Expression of Wish form is kept up todate. You can complete an Expression of Wish form online by logging inthrough the ‘My Account’ area of www.vodafonepensionsupdate.co.uk.

If you die in retirement, the benefits your dependant(s) will receive will dependon the choices you made when you took your pension.

8 Other benefits






Other benefits

https://fed.vodafone.com/fed/idp/initiatesso?providerid=https://ssl.perquisite.net/RewardCentre/federation

...I change my mind?If you change your mind about being a member of the Plan, you canstop making contributions by notifying Vodafone Pensions. YourAccount will remain invested in the Plan until you take your benefitsor you will be treated as a leaver. If you opt out, in line withgovernment legislation, Vodafone may have to put you back into the Plan.

...I want to rejoin?If you opt out of the Plan and decide you want to rejoin at a later date,you can do so.

...I have benefits in another pension arrangement?You may be able to transfer these benefits into the Plan. Pleasecontact Vodafone Pensions for more information. You should takeindependant financial advice before deciding to transfer your pension benefits.

...I take a career break?Career breaks could include adoption, maternity, parental or paternityleave as well as any time where you are temporarily absent from workbut are still being paid by the Company. For as long as you are stillbeing paid, contributions to your Account can continue. If your leaveis unpaid, contributions to your Account in the Plan will stop, but youcan leave your Account invested in the Plan.

If you don’t want to save for retirement in the Plan, you can opt out but you’ll be missing out on:

• An income from the Plan when you retire.

• Extra money from Vodafone.

• Income protection if you get ill.

Remember...

9 If you leave








If you leave What if...If you have been a member of the Plan for 30 days or more you can leave your Account invested in the Plan until you decide to take your benefits, or you can transfer the value of your Account to another registered pension arrangement. If you were a member of the Plan for less than 30 days you will receive a refund of any contributions that have been taken from your pay.






Contributions to the Plan are normally made throughsalary sacrifice. You sacrifice a specific amount ofsalary based on your choice of contribution rate. TheCompany then makes contributions into yourAccount that incorporate your salary sacrifice and itsmatched contribution. You need to choose yourcontribution rate and this section aims to help youwith that decision.

Costs

10 Costs

Contributions to the Plan are normally made through salary sacrifice. Salary sacrifice is acost-effective way of making contributions as:

• Your salary is reduced by an amount equal to your chosen contribution rate.

• The Company contributes this amount to your Account, together with itsmatched contributions.

• As your salary is lower, you pay less NI.

• The Company also pays less NI, which helps it to support the Plan.

• HR keeps a record of your salary before salary sacrifice (called your notional salary),which will be used to calculate other benefits.

Salary sacrifice does not change the amount of money paid into your Account in the Plan.

Amount of salary subject to NI

Your salary beforesalary sacrifice

Your salary aftersalary sacrifice

Salary adjustment

How are contributions made to the Plan?

Is salary sacrifice suitable for everyone?There may be a small number of employees who might not benefit from salarysacrifice. These include employees:

•Who earn close to the national minimum wage.

•Whose State benefits may be affected.

•Who already participate in other salary sacrifice arrangements with Vodafone.

All members have the option to opt out of the salary sacrifice arrangement and paycontributions direct from their salary. You should contact Vodafone Pensions formore information.

11 How are contributions made to the Plan?






2%

4%

Total contribution

6%

3%

6%

Total contribution

9%

8%

Total contribution

12%

Total contribution15% or more

10%*

It’s up to you – you choose your contribution rate, from the minimum of 2% up to 5% of your PensionableSalary. The Company doubles your contribution rate, up to a maximum of 10% of Pensionable Salary. So, ifyou choose a contribution rate of 5% of Pensionable Salary, you would receive a 10% contribution from theCompany, taking the total amount contributed into your Account to 15% of your Pensionable Salary. Thediagram below shows how this works:

Can I change my contribution rate?You can increase or reduce yourcontribution rate at any time.

Your contributionrate

Company matchedcontribution

* This is Company’s maximum contribution

How much will it cost me to join?

5%or more4%

12 How much will it cost me to join?








You also get tax reliefThe cost of participating in the Plan is less than you might think. This is because inaddition to the NI savings you make on your sacrificed amount, you also receive tax relief.

If you earn £20,000 a year and choose a 5% contribution rate, the total contribution toyour Account would be broken down as follows:

Totalcontributionto Account 15% of

PensionableSalary(£3,000)

Member sacrifice

5% (£1,000)

Companymatched

contribution 10% (£2,000)

Companymatched

contribution 10% (£2,000)

Member £690

Tax relief £200

NI savings £110

Actual cost

The amount of tax advantaged savings that you can make into UK pensions isrestricted by the Annual and Lifetime Allowances. Both of these are set by thegovernment. More information about these allowances can be found in the Q&Asection of www.vodafonepensionsupdate.co.uk

The cost ofparticipatingin the Plan isless than youmight think.

13 How much will it cost me to join?






Each year you will receive a Pension Statement showing you the current value of your Account andan estimate of what you could receive at age 65. A retirement calculator is available for you to useon our website to find out the benefits of increasing your contributions. If you don’t think this willbe enough, you could:

• Increase your contribution rate – if your current contribution rate is less than 5% of yourPensionable Salary and you increase it, you would also benefit from additional Companycontributions.

• Make Additional Voluntary Contributions (AVCs) – if your contribution rate is already 5% ofyour Pensionable Salary, you can make AVCs. AVCs can be paid monthly or as one-off paymentsand are not made through salary sacrifice. Any regular AVCs can be changed at any time. Whenyou retire you can use the value of your AVC Account to buy additional retirement benefits.

To change your contribution rate or set up regular AVCs,please visit My Choices.

How can I increase my benefits?

Before paying AVCs you should make sure that your contribution rate is already5% to benefit from the maximum Company ‘matching’ contributions.

14 How can I increase my benefits?






https://fed.vodafone.com/fed/idp/initiatesso?providerid=https://ssl.perquisite.net/RewardCentre/federation






The contributions to your Account are invested untilyou take your benefits. The aim of these investmentsis to grow the value of your Account. The Companyoffers a range of investment funds for you to choosefrom and has ‘Lifestyle’ and ‘self select’ options. Thissection gives you more information on investmentsto help you with your choices.

Investments

15 Investments

Where you invest will depend on how far you are from retirement,your attitude to risk and the amount of control you want to haveover your Account. Your investments will have a direct effect on thegrowth of your Account so it is important to consider:

How far you are from retirementThe further you are from retirement, the more time you have to rideout the ups and downs of the stock markets. This means that youmay want to invest in high-risk investments that have the potentialfor high return.

As you approach retirement you have less time to ride out anydownturns in the market. Therefore it may be worth consideringinvesting in lower-risk investments – these may provide lowerreturns but they also provide more security.

Your attitude to riskIf you are open to taking risks, you may feel comfortable investingyour Account in higher-risk areas in the hope to receive high returns.If you are not comfortable taking risks, you may prefer to invest inlower-risk areas that may produce lower returns.

are loans to companies,organisations or governments.Bonds provide investmentreturns either at a fixed rate or avariable rate (e.g. linked toinflation). Bonds can also beissued for different lengths oftime. They are traded in a similarway to shares so their marketvalue will rise and fall, but notusually as sharply as the value ofshares. Bonds issued by the UKGovernment are called ‘gilts’.

generally representsinvestments in depositaccounts and othertypes of cash holdings.Cash providessignificant protectionfrom volatility of fundvalues, but its realvalue may be eroded intimes when inflation isrelatively high.

are part ownership in acompany listed on a sharemarket in the UK or globally.Their value changes largelydepending on theperformance of the issuingcompany and marketconditions. Historically,shares have producedrelatively strong returns in thelong term compared to bondsor cash. However, they canfall as well as rise in value,sometimes quite sharply.

Bonds and gilts CashEquities

The funds that you can choose from in the Plan will, in the main, be invested in one or more of the following areas:

Things to consider whenchoosing where to invest

Types of investment

16 Things to consider when choosing where to invest & Types of investment






Where can I invest?You basically have two ways of investing the contributions that have built up in your Account:

• You can self select your investment funds from a wide range of options; or

• You can take the Lifestyle approach to investing.

Self selectSelf select gives you the freedom to choose the funds in which your Account is invested.

LifestyleYou can take advantage of one of three lifestyle options, which automatically change whereyour account is invested as you approach retirement. Lifestyle funds automatically moveprogressively into lower risk investments (like bonds and cash) as you get closer to yourretirement date. The aim is to protect the value of your Account as you near retirement.

Looking after your investmentsYou should review your investments regularly to ensure that they remain suitable for yourpersonal circumstances. You can track the performance of your investments online atwww.vodafonepensionsupdate.co.uk or by looking at your annual Pension Statement.

You can change your investment choices as often as you like by visitingwww.vodafonepensionsupdate.co.uk or by contacting Vodafone Pensions.

How to find out about the investment funds in the Plan:

• Visit www.vodafonepensionsupdate.co.uk

•Go to the ‘Pension Info’ section, where you can see a guide to the different LifestyleOptions and the latest fund factsheets.

• To change your investment options you should select the link through to the ePA site.

• Select ‘I want to update my...investments’.

If you would like advice on your investment decisions, you should contact afinancial adviser. To find a financial adviser in your area visit www.unbiased.co.uk.Any financial advice you take will be at your own cost.

17Where can I invest?











The Plan is run by a Trustee Company who look outfor the best interests of members. This section givesyou more detailed information on the Plan andprovides contact details you may find helpful.

Details

18 Details

The Plan is set up and run under the Plan’s Trust Deed and Rules. It is managed by a TrusteeCompany, the Vodafone DC Pension Trustee Company Limited. The Trustee Company ismanaged by Trustee Directors and it is their responsibility to ensure the Plan is run in the bestinterests of members.

Day-to-day management of the Plan is carried out by an external administrator, VodafonePensions. You can carry out most of your transactions online using the electronic PensionsAdministration (ePA) system. You will be sent a username and password when you join the Plan.You can also download our Pension App from the ‘Pension Info’ section ofwww.vodafonepensionsupdate.co.uk to enable you to access information about yourinvestments on the move.

The assets of the Plan (the value of members’ individual Accounts) are held in trust and areseparate from the assets of the Company. The Plan is a registered pension scheme under theFinance Act 2004 and benefits from valuable tax privileges, such as tax relief on contributions.

More detailed information about the Plan can be found in the Trust Deed and Rules. The TrustDeed and Rules form the legal basis of the Plan. If the information in this booklet conflicts withthe Trust Deed and Rules, the provisions of the Trust Deed and Rules will prevail. A copy of theTrust Deed and Rules is available to members on request from Vodafone Pensions.

This booklet is based on legislation and tax regulations in force at the time of publication andall benefits are subject to the Lifetime Allowance and Annual Allowance set by HM Revenueand Customs (HMRC).

How the Plan is run

The Trustee Directors that run the Trustee company are either Companyor member nominated.

Amendments or discontinuanceThe Company, with the consent of the Trustee, may amend the Plan from time to time, or it maychoose to discontinue the Plan. You will be given due notice of any changes to benefits.

Assignment of benefitsYour benefits from the Plan may not be assigned, charged or used as security for a loan.

Communication with membersThe Trustee issues annual Pension Statements and regular newsletters to members. Planinformation is also available on the pensions website: www.vodafonepensionsupdate.co.uk.

Data protectionIn running the Plan, the Trustee complies with the principles set out in the Data Protection Act1998. This Act classifies information as either sensitive or non-sensitive. Sensitive informationcovers personal details, such as your health. This information will not be used without your writtenconsent. Information that is non-sensitive includes your date of birth, address and pay details.Under the Data Protection Act 1998, this non-sensitive information can be used without yourwritten consent, however, by completing an application form to join the Plan you are giving yourconsent to the use of your sensitive personal details for the purposes of the Plan.

All of your personal information is treated as confidential and the details will be used only foradministering your pension; this may include sharing your information between the Trustee, theCompany and Vodafone Pensions, and disclosure to the Plan’s advisers and service providers, butonly where it is necessary as part of providing your Plan benefits. We may disclose your personalinformation if required to do so by any legal, regulatory or statutory bodies, such as HMRC.

19 How the Plan is run






DisputesWe will do our best to make surethat you never have cause tocomplain about your membershipof the Plan. However, if you do havea complaint, the Plan has aninternal procedure for resolvingdisputes. This complies with thePensions Act 1995.

You should contact VodafonePensions in the first instance. If youare still not satisfied and wish totake the matter further, you canmake a formal complaint. Theprocess for making a complaint is:

Stage 1Contact the Head of Pensions at: OneKingdom Street, Paddington Central,London, W2 6BY and request aDispute Resolution Form. Thecompleted form should be returnedto the Head of Pensions. In normalcircumstances you will receive aresponse within two months.

Stage 2If you aren’t happy with thedecision, you can appeal to theTrustee. You must refer this matterto the Trustee within six months ofthe stage 1 decision. You will benotified of the Trustee’s decisionwithin two months.

Stage 3If you are not satisfied with theTrustee’s decision, you have the rightto refer your dispute to The PensionsAdvisory Service (TPAS) andultimately the Pensions Ombudsman.

20 Disputes






Useful contacts

Pension WiseThe Government is providing free and impartial advice to helpyou understand your benefits and options in retirement. You canreceive this guidance face-to-face, by phone and online.

Tel: 0300 330 1001

Website: www.pensionwise.gov.uk

The Pensions Advisory Service (TPAS)TPAS is an independent organisation that provides free adviceand guidance on all types of pension queries as well as helpingsettle disputes or complaints you have failed to resolve with theTrustee or Vodafone Pensions.

Tel: 0300 123 1047

Website: www.pensionsadvisoryservice.org.uk

Address: The Pensions Advisory Service, 11 Belgrave Road,London SW1V 1RB.

Pensions OmbudsmanThe Pensions Ombudsman may investigate and determine any complaint or dispute over the way in which a pensionarrangement is run. Normally the Ombudsman will require you to have been through the Plan’s procedure for resolving disputesand will ask TPAS to consider the complaint first.

Tel: 0207 630 2200

Website: www.pensions-ombudsman.org.uk

Address: The Pensions Ombudsman, 11 Belgrave Road, London SW1V 1RB.

The Pensions RegulatorThe Pensions Regulator regulates the running of occupationalpension arrangements like the Vodafone UK DefinedContribution Pension Plan and can intervene if trustees,employers or professional advisers have failed in their duties.

Website: www.thepensionsregulator.gov.uk

Address: The Pensions Regulator, Napier House, Trafalgar Place, Brighton BN1 4DW.

The Pension Tracing ServiceIf you have lost track of a pension you can trace it by contactingthe Pension Tracing Service online.

Website: www.gov.uk/find-lost-pension

The Financial Conduct AuthorityThe Financial Services Authority regulates the financial servicesindustry in the UK and provides information for consumers aboutall aspects of financial planning, including how to find an adviserand what questions to ask.

Website: www.fca.org.uk

Financial advisersDue to legal restrictions, neither the Company nor the Trustee ofthe Plan are able to give you financial advice on your pension orinvestments. Therefore, it is recommended you take financialadvice when considering your options. Any financial advice youtake will be at your own cost.

Website: www.unbiased.co.uk

This will give you a list of financial advisers in your area.

Vodafone PensionsThe Vodafone Pensions team is available to answer anyqueries you may have about your Account.

Website: www.vodafonepensionsupdate.co.uk

Email: [email protected]

Tel: 0800 917 1192

Address: Vodafone UK Defined Contribution Pension Plan,Towers Watson, PO Box 545, Redhill, Surrey, RH1 1YX.

In addition, there are a number of other contacts youmay find useful.

Financial advisers usually offer initial meetings freeof charge. A financial adviser will be able to help youdecide what the best course of action would be foryour retirement depending on your personalcircumstances.

21 Useful contacts






GlossaryAccountYour ‘pot of money’ in the Plan. The value of yourAccount is the value of the contributions in yourAccount and any investment returns earned on these contributions.

CompanyVodafone Group plc (or in some contexts the company within the Vodafone Group by which you are employed).

DependantSomeone who is married to you, in a civil partnershipwith you, or, in the opinion of the Trustee, is financiallydependent on you or interdependent with you.

Normal Retirement AgeYour 65th birthday.

Pensionable SalaryYour basic pay.

PlanThe Vodafone UK Defined Contribution Pension Plan.

TrusteeThe Vodafone DC Pension Trustee Company Limited.

Vodafone PensionsThe third party administrator that looks after the day-to-day running of the Plan.

22 Glossary








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