The RBS Group

Pension News Your Pension Team Find out more The following documents are available In this section we explain some of the more important changes that are happening in relation to The Trustee Board is responsible for operating the Plan in line on request: pensions during 2013. with its formal rules and pensions law. We also have a duty to The RBS Group > Latest Annual Report and protect the interests of all our Plan members, including those The State Pension Changes to tax relief Accounts who are no longer employed in the Group, but who still have Shows the Plan’s income and The way in which State pensions are paid is changing. There were major changes to tax relief on pension savings in expenditure in the 12 months to Retirement Savings Plan the UK which came in to force from 6 April 2011. benefits in the Plan (our deferred members). The Government has announced a move to a single-tier state 30 September 2012. pension with the aim of delivering a simple and fair state Most employees receive tax relief on all pension contributions > Current Payment Schedule pension that provides clarity and confidence. and there is no benefit-in-kind tax on contributions to the Group nominated Shows how much money is being paid Plan made by the Group. There is a limit on the amount that Ray Martin (Chairman) into the Plan. The single-tier pension will be implemented for people receives tax relief, and this is now £50,000. Please note this Contents reaching State Pension age from April 2017 at the earliest. Robert Waugh will be reducing to £40,000 in 2014. Elaine Arden (previous Chairman) Transitional arrangements will apply for people with pre- > Trustee’s Statement of Members’ Newsletter 2013 > 01 Message from the Chairman David McGraw Investment Principles implementation National Insurance records. The reforms If your pension contributions are more than this limit then you > 02 Market Commentary Explains how we invest the money also mean the end of ‘contracting out’, although this doesn’t will have to pay tax at your marginal rate on the excess. In Member elected paid into the Plan > 02 Investment Report directly affect Plan members as the Plan is not contracted calculating the limit for any year then you may add on any Carol Wilson A message from the Chairman out. The Government has recently announced plans for the unused allowance from the previous three years (provided John Peters > 03 Plan Finances and Membership way the State Pension Age will increase, the next announced you were a member of a pension scheme in those years). You Retirement planner Welcome to the latest newsletter for members of the > 04 Retirement Planning step being to 67 between 2026 and 2028. As life expectancy will be informed of your Pension Input Amount over the year Group’s Retirement Savings Plan (‘the Plan’). > 04 Benefit News continues to increase the Government believes there is to 5 April each year (referred to as the Pension Input Period) You can access the a need for a more structured framework within which to and this will have to be added together if you have more than retirement planner on > 05 Pension News Changes during the year RBSpeople.com/Your Reward. consider changes to State Pension Age in future. The one scheme. > 06 Your Pension Team Government will carry out a review of the State Pension age Ray Martin joined the Trustee Board in February 2012. You will need your RBSelect pin every five years, based around the principle of maintaining a As well as the limit on the amount of tax-advantaged Elaine Arden resigned from the Trustee Board in February 2012. to log in. given proportion of adult life in receipt of state pension. They pension saving that you make in a year, there is also a limit David McGraw resigned from the Trustee Board in June 2012. This newsletter is our opportunity as Trustee to update you The current minimum contribution rate of 2% of Value Account hope that this more structured framework will help to ensure on the total amount of pension value you can build up in a Contact us on how the Plan is performing and to highlight any important will gradually be increased in future years as part of the the costs of increasing longevity are shared fairly between lifetime. This is currently £1.5 million, but will be changing to If you want a copy of any of these information to you. We have worked hard throughout the year legislation. However if you contribute at the minimum rate you the generations, and provide greater clarity around how State £1.25 million in 2014. You will have been informed if the Group documents, please email to safeguard your interests and over the next year we will be should not expect that this is sufficient to achieve a reasonable Pension age will change in future. thinks you are likely to be affected by this limit, but it is your Group Pension Services. paying particular focus to the design and management of level of retirement income, therefore you may wish to consider responsibility to check. the Plan. additional contributions. The phased increase in State Pension Age for women from External – The Trustee Board is made up of five Trustee Directors The Group and the Trustee will be looking at the Plan, its 60 to 65 is now scheduled to be completed by 2018, earlier [email protected] than the original 2020 planned. The State Pension Age for and is responsible for the investment of the Plan’s assets. design and members saving levels this year and considering Internal – men and women is then scheduled to increase to 66 by 2020 The performance of each fund and the monitoring of the whether there are changes that could enhance the current ~ RBS Staff pension queries and continue to increase thereafter. underlying investment managers are currently carried out offering. If you are an active member I would urge you Deferred members – through the Common Investment Fund which provides to consider your own circumstances in the run up to the For more information on the State pension, including details [email protected] investment options for a number of the Group’s UK pension RBSelect Pension Election Window in March 2013 and review on the age you can claim your State pension, obtaining a plans. We are currently considering a change to the your own contribution level and investment choices. The State pension forecast and how to claim your pension, visit: investment lifestyle approach and will keep you updated retirement planner included in Your Reward online will assist Alternative formats with any changes. you in understanding how your pension works as part of your www.gov.uk/state-pension This communication is total remuneration package and will assist in making informed www.pensionsadvisoryservice.org.uk/state-pensions available in large print, Braille or When you make retirement savings, the tax man helps you as decisions about retirement savings. audio on request from Group you are allowed tax relief on the contributions that are paid Pension Services. in. This means that for a basic rate UK taxpayer, each £100 As part of our review of the Plan, which we are carrying out to invested will only cost £80 (or less when you consider NI relief in ensure that the Plan provides the best possible benefits for Data protection addition). When you retire you can choose to take 25% of your the members, the Group will be asking you for your opinions. fund at retirement as a tax free lump sum. Further details of tax Look out for information early in 2013 and roadshow events in The Trustee holds personal data on your behalf and is a registered data limits and restrictions are shown in the ‘Benefit News’ section. the run up to the Pension Election Window in March. controller under the UK Data Protection In 2012 legislation was introduced to make it the law for Finally I would like to thank my fellow Trustee Directors and Group Pension Services Act 1988. employers to automatically enrol employees into a pension our professional advisors for their hard work and commitment HR Shared Services plan. In July 2012 RBS became one of the first employers to throughout the year, and I look forward to working with them The Royal Bank of Scotland Group The information is mainly used for put this legislation into practice and auto-enrolled all eligible next year. PO Box 1390 administering the Plan, but occasionally employees who were not members of the Plan (or who were Croydon CR9 1YB the Trustee may authorise the use contributing below the minimum). This resulted in an extra Ray Martin Depot Code 190 for sending you details of products 7,000 members joining the Plan. Chairman, RBS Retirement Savings Trustee Limited provided by companies of the Group.

05 RBS Group Retirement Savings Plan 06 RBS Group Retirement Savings Plan RBS Group Retirement Savings Plan 01 Market Commentary Plan Finances and Membership Retirement Planning It has been another eventful year for the global economy. The UK economy struggled with three The following is a summary of the financial statements contained in the Trustee Annual Report for the It is important that you regularly review how much you are saving for your retirement and the successive quarters of negative growth spanning the end of 2011 and the first half of 2012. year ended 30 September 2012. The full financial statements from which these figures have been investment options available to you whilst a member of the RSP. Government policy has placed emphasis on controlling borrowing costs ahead of using higher taken have been independently audited by Deloitte LLP. government spending to stimulate growth. The level of contributions you make and how these Both can be accessed on the Retirement Savings pages on Plan Finances £ The European sovereign debt crisis continues to cause Against the tough economic background, investment contributions are invested will directly impact the amount Insite by selecting: of pension you can buy with your fund. We are currently problems for both investors and policy makers. Spiralling returns have been remarkably strong. Corporate HR > Pay & Benefits > Retirement Savings borrowing costs forced Greece and Spain to seek external profitability looks good on the whole, and many companies Fund value at 1 October 2011 141,083,974 considering how we communicate to retiring members assistance and forced Germany to allow the European have seen improving financial health as they have trimmed about the options available when buying a pension, but it There is also summary information on the Plan available is important that you start to plan for the amount you will Central Bank to provide that assistance. costs and paid down debt. Action taken by central banks Income: on RBSelect pages at rbspeople.com which can be and governments has also supported higher asset prices need now. accessed externally. Emerging market economies have slowed as global – contributions 74,053,936 – in particular, the bond buying policies often referred to as There is a wide range of information available to help you demand has fallen. The US economy fared better with ‘quantitative easing’. – transfers in 3,002,084 signs of improvement in the housing and banking markets, do this. For employee members, a good place to start is to – other income 3,040,958 as well as continued strong corporate profits supported by work through the learning module on A2L and to model your government spending and stimulus measures. Total income 80,096,978 options in the retirement planner.

Expenditure: – benefit payments (3,431,770) Investment Report – member transfers out (8,755,377) Benefit News Investment returns have been largely positive over the year, as governments printed money to try and – administrative expenses (51) In July 2012 RBS became one of the first employers to comply with the new auto-enrolment stimulate growth. The green bars in the chart below show the investment performance for each fund Total expenditure (12,187,198) legislation, enrolling all of its employees who were not participating in the Plan (or who were for the year to 30 September 2012. The dark blue bar shows performance since inception, which in participating below the minimum) with a contribution level of 2%. some cases is less than one year. The pale blue bars show the three year performance. Returns on Investments: – Interest income 43 The aim of auto-enrolment is to encourage people to If we decide that this process can be improved then save for their retirement and over the next few years the we will be back in touch. 20 – Change in market value of investments 24,595,573 minimum auto enrolment contribution requirement will be Please think carefully about your contribution level 15 Total 24,595,616 increasing in line with legislation. The next time that the Group will be required to carry out an auto-enrolment and investment choice in the run up to the March 2013 election window and use this opportunity to think about 10 Fund value at 30 September 2012 233,589,370 exercise is in 2015 and there will be communications on this nearer to the time. The Group wants to ensure that your retirement provision. 5 your pension provision is not just adequate in the eyes of

ormance % p.a. (Net of fees) the law, but also meets your requirements, so over the next

rf Membership 0 few months it will be considering the Plan membership nd Pe

Fu and design and looking for your opinions too – look out for -5 1 year return 3 year return Since inception 30 September 2012 30 September 2011 details heading your way soon. The Group wants -10 Active members 29,067 29,881 As part of this drive to improve our plan the Group and Diversified UK Equity Emerging Pre - Index - UK Gilts > UK Equity International International Corporate Property Growth Tracker Markets Retirement Linked 15 Years Cash Fund Trustee have already started to consider the default fund, to ensure that your pension Fund Equity Tracker Equity Fund Bond Fund* Fund Fund Fund Equity Fund Fund Tracker Life Assurance Only members 5,718 11,728 which most members are invested in, and the approach 1 Year 16.6% 17.2% 18.2% 18.1% 15.9% 17.1% 5.4% 7.5% 0.5% provision is not just adequate Return Pending members 4,468 7,880 we take to ‘lifestyling’. Lifestyling is the process whereby 3 Year 7.5% 8.1% 9.4% 7.4% 6.6% 12.1% 9.4% 7.3% 0.5% your money is moved from return seeking investments Return Deferred members 9,249 2,122 in the eyes of the law, but also Since (such as equities) towards less volatile investments (such 4.0% 3.4% 2.3% 4.6% 1.7% 6.2% 7.9% 7.3% 3.8% 10.3% -5.7% 2.4% inception Total 48,502 51,611 as bonds) that are better matched to buying a pension as meets your requirements Inception 30/09/06 30/09/06 30/09/06 30/09/06 30/09/06 31/12/11 30/09/06 30/09/06 30/09/06 30/09/06 30/09/06 30/09/06 date you near retirement. Over the course of the scheme year there were two events which caused large movements in membership. In June, Direct Line Group was divested from the RBS Group and employees who were contributing to the Plan were moved to a new scheme provided by Direct Line Group. In July, as mentioned in the Chairman’s message, the Group auto-enrolled a Remember that your pension investments are designed to The Trustee manages the funds and the investment default large number of employees who were not previously saving for their retirement. be held for the long term, and so you should not base your and as part of our ongoing exercise to ensure members decisions only on how the funds have performed this year. are getting the best from their pensions. These fund choices and their management are kept under review.

02 RBS Group Retirement Savings Plan 03 RBS Group Retirement Savings Plan 04 Market Commentary Plan Finances and Membership Retirement Planning It has been another eventful year for the global economy. The UK economy struggled with three The following is a summary of the financial statements contained in the Trustee Annual Report for the It is important that you regularly review how much you are saving for your retirement and the successive quarters of negative growth spanning the end of 2011 and the first half of 2012. year ended 30 September 2012. The full financial statements from which these figures have been investment options available to you whilst a member of the RSP. Government policy has placed emphasis on controlling borrowing costs ahead of using higher taken have been independently audited by Deloitte LLP. government spending to stimulate growth. The level of contributions you make and how these Both can be accessed on the Retirement Savings pages on Plan Finances £ The European sovereign debt crisis continues to cause Against the tough economic background, investment contributions are invested will directly impact the amount Insite by selecting: of pension you can buy with your fund. We are currently problems for both investors and policy makers. Spiralling returns have been remarkably strong. Corporate HR > Pay & Benefits > Retirement Savings borrowing costs forced Greece and Spain to seek external profitability looks good on the whole, and many companies Fund value at 1 October 2011 141,083,974 considering how we communicate to retiring members assistance and forced Germany to allow the European have seen improving financial health as they have trimmed about the options available when buying a pension, but it There is also summary information on the Plan available is important that you start to plan for the amount you will Central Bank to provide that assistance. costs and paid down debt. Action taken by central banks Income: on RBSelect pages at rbspeople.com which can be and governments has also supported higher asset prices need now. accessed externally. Emerging market economies have slowed as global – contributions 74,053,936 – in particular, the bond buying policies often referred to as There is a wide range of information available to help you demand has fallen. The US economy fared better with ‘quantitative easing’. – transfers in 3,002,084 signs of improvement in the housing and banking markets, do this. For employee members, a good place to start is to – other income 3,040,958 as well as continued strong corporate profits supported by work through the learning module on A2L and to model your government spending and stimulus measures. Total income 80,096,978 options in the retirement planner.

ormance % p.a. (Net of fees) the law, but also meets your requirements, so over the next

rf Membership 0 few months it will be considering the Plan membership nd Pe

ormance % p.a. (Net of fees) the law, but also meets your requirements, so over the next

rf Membership 0 few months it will be considering the Plan membership nd Pe

02 RBS Group Retirement Savings Plan 03 RBS Group Retirement Savings Plan 04 Pension News Your Pension Team Find out more The following documents are available In this section we explain some of the more important changes that are happening in relation to The Trustee Board is responsible for operating the Plan in line on request: pensions during 2013. with its formal rules and pensions law. We also have a duty to The RBS Group > Latest Annual Report and protect the interests of all our Plan members, including those The State Pension Changes to tax relief Accounts who are no longer employed in the Group, but who still have Shows the Plan’s income and The way in which State pensions are paid is changing. There were major changes to tax relief on pension savings in expenditure in the 12 months to Retirement Savings Plan the UK which came in to force from 6 April 2011. benefits in the Plan (our deferred members). The Government has announced a move to a single-tier state 30 September 2012. pension with the aim of delivering a simple and fair state Most employees receive tax relief on all pension contributions > Current Payment Schedule pension that provides clarity and confidence. and there is no benefit-in-kind tax on contributions to the Group nominated Shows how much money is being paid Plan made by the Group. There is a limit on the amount that Ray Martin (Chairman) into the Plan. The single-tier pension will be implemented for people receives tax relief, and this is now £50,000. Please note this Contents reaching State Pension age from April 2017 at the earliest. Robert Waugh will be reducing to £40,000 in 2014. Elaine Arden (previous Chairman) Transitional arrangements will apply for people with pre- > Trustee’s Statement of Members’ Newsletter 2013 > 01 Message from the Chairman David McGraw Investment Principles implementation National Insurance records. The reforms If your pension contributions are more than this limit then you > 02 Market Commentary Explains how we invest the money also mean the end of ‘contracting out’, although this doesn’t will have to pay tax at your marginal rate on the excess. In Member elected paid into the Plan > 02 Investment Report directly affect Plan members as the Plan is not contracted calculating the limit for any year then you may add on any Carol Wilson A message from the Chairman out. The Government has recently announced plans for the unused allowance from the previous three years (provided John Peters > 03 Plan Finances and Membership way the State Pension Age will increase, the next announced you were a member of a pension scheme in those years). You Retirement planner Welcome to the latest newsletter for members of the > 04 Retirement Planning step being to 67 between 2026 and 2028. As life expectancy will be informed of your Pension Input Amount over the year Group’s Retirement Savings Plan (‘the Plan’). > 04 Benefit News continues to increase the Government believes there is to 5 April each year (referred to as the Pension Input Period) You can access the a need for a more structured framework within which to and this will have to be added together if you have more than retirement planner on > 05 Pension News Changes during the year RBSpeople.com/Your Reward. consider changes to State Pension Age in future. The one scheme. > 06 Your Pension Team Government will carry out a review of the State Pension age Ray Martin joined the Trustee Board in February 2012. You will need your RBSelect pin every five years, based around the principle of maintaining a As well as the limit on the amount of tax-advantaged Elaine Arden resigned from the Trustee Board in February 2012. to log in. given proportion of adult life in receipt of state pension. They pension saving that you make in a year, there is also a limit David McGraw resigned from the Trustee Board in June 2012. This newsletter is our opportunity as Trustee to update you The current minimum contribution rate of 2% of Value Account hope that this more structured framework will help to ensure on the total amount of pension value you can build up in a Contact us on how the Plan is performing and to highlight any important will gradually be increased in future years as part of the the costs of increasing longevity are shared fairly between lifetime. This is currently £1.5 million, but will be changing to If you want a copy of any of these information to you. We have worked hard throughout the year legislation. However if you contribute at the minimum rate you the generations, and provide greater clarity around how State £1.25 million in 2014. You will have been informed if the Group documents, please email to safeguard your interests and over the next year we will be should not expect that this is sufficient to achieve a reasonable Pension age will change in future. thinks you are likely to be affected by this limit, but it is your Group Pension Services. paying particular focus to the design and management of level of retirement income, therefore you may wish to consider responsibility to check. the Plan. additional contributions. The phased increase in State Pension Age for women from External – The Trustee Board is made up of five Trustee Directors The Group and the Trustee will be looking at the Plan, its 60 to 65 is now scheduled to be completed by 2018, earlier [email protected] than the original 2020 planned. The State Pension Age for and is responsible for the investment of the Plan’s assets. design and members saving levels this year and considering Internal – men and women is then scheduled to increase to 66 by 2020 The performance of each fund and the monitoring of the whether there are changes that could enhance the current ~ RBS Staff pension queries and continue to increase thereafter. underlying investment managers are currently carried out offering. If you are an active member I would urge you Deferred members – through the Common Investment Fund which provides to consider your own circumstances in the run up to the For more information on the State pension, including details [email protected] investment options for a number of the Group’s UK pension RBSelect Pension Election Window in March 2013 and review on the age you can claim your State pension, obtaining a plans. We are currently considering a change to the your own contribution level and investment choices. The State pension forecast and how to claim your pension, visit: investment lifestyle approach and will keep you updated retirement planner included in Your Reward online will assist Alternative formats with any changes. you in understanding how your pension works as part of your www.gov.uk/state-pension This communication is total remuneration package and will assist in making informed www.pensionsadvisoryservice.org.uk/state-pensions available in large print, Braille or When you make retirement savings, the tax man helps you as decisions about retirement savings. audio on request from Group you are allowed tax relief on the contributions that are paid Pension Services. in. This means that for a basic rate UK taxpayer, each £100 As part of our review of the Plan, which we are carrying out to invested will only cost £80 (or less when you consider NI relief in ensure that the Plan provides the best possible benefits for Data protection addition). When you retire you can choose to take 25% of your the members, the Group will be asking you for your opinions. fund at retirement as a tax free lump sum. Further details of tax Look out for information early in 2013 and roadshow events in The Trustee holds personal data on your behalf and is a registered data limits and restrictions are shown in the ‘Benefit News’ section. the run up to the Pension Election Window in March. controller under the UK Data Protection In 2012 legislation was introduced to make it the law for Finally I would like to thank my fellow Trustee Directors and Group Pension Services Act 1988. employers to automatically enrol employees into a pension our professional advisors for their hard work and commitment HR Shared Services plan. In July 2012 RBS became one of the first employers to throughout the year, and I look forward to working with them The Royal Bank of Scotland Group The information is mainly used for put this legislation into practice and auto-enrolled all eligible next year. PO Box 1390 administering the Plan, but occasionally employees who were not members of the Plan (or who were Croydon CR9 1YB the Trustee may authorise the use contributing below the minimum). This resulted in an extra Ray Martin Depot Code 190 for sending you details of products 7,000 members joining the Plan. Chairman, RBS Retirement Savings Trustee Limited provided by companies of the Group.

05 RBS Group Retirement Savings Plan 06 RBS Group Retirement Savings Plan RBS Group Retirement Savings Plan 01 Pension News Your Pension Team Find out more The following documents are available In this section we explain some of the more important changes that are happening in relation to The Trustee Board is responsible for operating the Plan in line on request: pensions during 2013. with its formal rules and pensions law. We also have a duty to The RBS Group > Latest Annual Report and protect the interests of all our Plan members, including those The State Pension Changes to tax relief Accounts who are no longer employed in the Group, but who still have Shows the Plan’s income and The way in which State pensions are paid is changing. There were major changes to tax relief on pension savings in expenditure in the 12 months to Retirement Savings Plan the UK which came in to force from 6 April 2011. benefits in the Plan (our deferred members). The Government has announced a move to a single-tier state 30 September 2012. pension with the aim of delivering a simple and fair state Most employees receive tax relief on all pension contributions > Current Payment Schedule pension that provides clarity and confidence. and there is no benefit-in-kind tax on contributions to the Group nominated Shows how much money is being paid Plan made by the Group. There is a limit on the amount that Ray Martin (Chairman) into the Plan. The single-tier pension will be implemented for people receives tax relief, and this is now £50,000. Please note this Contents reaching State Pension age from April 2017 at the earliest. Robert Waugh will be reducing to £40,000 in 2014. Elaine Arden (previous Chairman) Transitional arrangements will apply for people with pre- > Trustee’s Statement of Members’ Newsletter 2013 > 01 Message from the Chairman David McGraw Investment Principles implementation National Insurance records. The reforms If your pension contributions are more than this limit then you > 02 Market Commentary Explains how we invest the money also mean the end of ‘contracting out’, although this doesn’t will have to pay tax at your marginal rate on the excess. In Member elected paid into the Plan > 02 Investment Report directly affect Plan members as the Plan is not contracted calculating the limit for any year then you may add on any Carol Wilson A message from the Chairman out. The Government has recently announced plans for the unused allowance from the previous three years (provided John Peters > 03 Plan Finances and Membership way the State Pension Age will increase, the next announced you were a member of a pension scheme in those years). You Retirement planner Welcome to the latest newsletter for members of the > 04 Retirement Planning step being to 67 between 2026 and 2028. As life expectancy will be informed of your Pension Input Amount over the year Group’s Retirement Savings Plan (‘the Plan’). > 04 Benefit News continues to increase the Government believes there is to 5 April each year (referred to as the Pension Input Period) You can access the a need for a more structured framework within which to and this will have to be added together if you have more than retirement planner on > 05 Pension News Changes during the year RBSpeople.com/Your Reward. consider changes to State Pension Age in future. The one scheme. > 06 Your Pension Team Government will carry out a review of the State Pension age Ray Martin joined the Trustee Board in February 2012. You will need your RBSelect pin every five years, based around the principle of maintaining a As well as the limit on the amount of tax-advantaged Elaine Arden resigned from the Trustee Board in February 2012. to log in. given proportion of adult life in receipt of state pension. They pension saving that you make in a year, there is also a limit David McGraw resigned from the Trustee Board in June 2012. This newsletter is our opportunity as Trustee to update you The current minimum contribution rate of 2% of Value Account hope that this more structured framework will help to ensure on the total amount of pension value you can build up in a Contact us on how the Plan is performing and to highlight any important will gradually be increased in future years as part of the the costs of increasing longevity are shared fairly between lifetime. This is currently £1.5 million, but will be changing to If you want a copy of any of these information to you. We have worked hard throughout the year legislation. However if you contribute at the minimum rate you the generations, and provide greater clarity around how State £1.25 million in 2014. You will have been informed if the Group documents, please email to safeguard your interests and over the next year we will be should not expect that this is sufficient to achieve a reasonable Pension age will change in future. thinks you are likely to be affected by this limit, but it is your Group Pension Services. paying particular focus to the design and management of level of retirement income, therefore you may wish to consider responsibility to check. the Plan. additional contributions. The phased increase in State Pension Age for women from External – The Trustee Board is made up of five Trustee Directors The Group and the Trustee will be looking at the Plan, its 60 to 65 is now scheduled to be completed by 2018, earlier [email protected] than the original 2020 planned. The State Pension Age for and is responsible for the investment of the Plan’s assets. design and members saving levels this year and considering Internal – men and women is then scheduled to increase to 66 by 2020 The performance of each fund and the monitoring of the whether there are changes that could enhance the current ~ RBS Staff pension queries and continue to increase thereafter. underlying investment managers are currently carried out offering. If you are an active member I would urge you Deferred members – through the Common Investment Fund which provides to consider your own circumstances in the run up to the For more information on the State pension, including details [email protected] investment options for a number of the Group’s UK pension RBSelect Pension Election Window in March 2013 and review on the age you can claim your State pension, obtaining a plans. We are currently considering a change to the your own contribution level and investment choices. The State pension forecast and how to claim your pension, visit: investment lifestyle approach and will keep you updated retirement planner included in Your Reward online will assist Alternative formats with any changes. you in understanding how your pension works as part of your www.gov.uk/state-pension This communication is total remuneration package and will assist in making informed www.pensionsadvisoryservice.org.uk/state-pensions available in large print, Braille or When you make retirement savings, the tax man helps you as decisions about retirement savings. audio on request from Group you are allowed tax relief on the contributions that are paid Pension Services. in. This means that for a basic rate UK taxpayer, each £100 As part of our review of the Plan, which we are carrying out to invested will only cost £80 (or less when you consider NI relief in ensure that the Plan provides the best possible benefits for Data protection addition). When you retire you can choose to take 25% of your the members, the Group will be asking you for your opinions. fund at retirement as a tax free lump sum. Further details of tax Look out for information early in 2013 and roadshow events in The Trustee holds personal data on your behalf and is a registered data limits and restrictions are shown in the ‘Benefit News’ section. the run up to the Pension Election Window in March. controller under the UK Data Protection In 2012 legislation was introduced to make it the law for Finally I would like to thank my fellow Trustee Directors and Group Pension Services Act 1988. employers to automatically enrol employees into a pension our professional advisors for their hard work and commitment HR Shared Services plan. In July 2012 RBS became one of the first employers to throughout the year, and I look forward to working with them The Royal Bank of Scotland Group The information is mainly used for put this legislation into practice and auto-enrolled all eligible next year. PO Box 1390 administering the Plan, but occasionally employees who were not members of the Plan (or who were Croydon CR9 1YB the Trustee may authorise the use contributing below the minimum). This resulted in an extra Ray Martin Depot Code 190 for sending you details of products 7,000 members joining the Plan. Chairman, RBS Retirement Savings Trustee Limited provided by companies of the Group.

05 RBS Group Retirement Savings Plan 06 RBS Group Retirement Savings Plan RBS Group Retirement Savings Plan 01