2019 INVESTMENT CHANGES .com

MMC UK Pension Fund

2019 INVESTMENT CHANGES

FREQUENTLY ASKED QUESTIONS

Online: pensions.uk. 1

MMC UK Pension Fund

Introduction

The Trustee of the MMC UK Pension Fund (the `Trustee') is introducing some enhancements to the investment options available to members.

The purpose of this document is to provide members with answers to some questions that may be raised as part of the investment change process. The document is to be read together with the announcement letter `Changes to your investment options', available on pensions.uk..

First published June 2019

Contents

1. Background and general information

2

2. About the SmartPath strategies and the default option

5

3. About the Self Select Funds

8

4. Options at retirement

9

5. Timings and logistics

12

6. Further information and financial advice

19

2

Online: pensions.uk.

1. Background and general information

Question

Answer

1. What is happening?

The Trustee and MMC have been working together to make sure that your savings in the MMC UK Pension Fund are managed in the best way possible, and that your options take into account what we understand about you as our members. The resulting changes to your options include:

? A new default investment option

? A change to the default investment strategy

? A refreshed and increased range of investment choices

? Fund charges that will be equal to or lower than what you pay now

? The ability (post September 2019) to transfer into the Fund from any other Defined Contribution pot that you may have

For more information, read the announcement letter on pensions.uk.

2. What prompted the Trustee to review the investment options offered to members?

One of the Trustee's key responsibilities is to monitor the continued suitability of the investment options available to you. The Trustee, in collaboration with MMC, carried out an extensive review of the Fund's design, comparing the current range of investment options against those available in the wider marketplace.

The Trustee also studied industry trends around how pension scheme members in the UK are looking to access their retirement savings and took expert advice as to what would be in the best interests of the Fund's members.

3. How do I find out more about my Fund's investments and the current value of my Individual Account?

To find out more about the Fund's investments, please visit pensions. where you will find an Investment Guide and Fund Factsheets for the individual funds.

To see the current value of your Individual Account and where your savings are invested, visit Mercer OneView (there is a link from pensions.)

4. As an active member, will the investment changes affect the contributions to my Individual Account?

As a result of these investment changes there will be:

? No change to contributions and the amount of money paid into your Individual Account (by you and MMC);

? No change to your take home pay or the way you make your contributions to the Fund; and

? No change to the benefits currently payable to your family / other dependants if you die while working for MMC.

Online: pensions.uk. 3

MMC UK Pension Fund

Question 5. Can I just keep my

existing funds?

6. I am currently a member of one of the legacy DC sections. How do the changes affect me?

7. What is a blackout period?

8. I would like to change my contribution rate to the Fund. How do I go about this?

Answer

No, all the existing funds including those used in the current default investment option will be removed following the transfers. All of your accumulated savings will be transferred as outlined in the announcement letter on pensions.uk. unless you choose alternative investments from the new options.

If you have Defined Contribution (DC) assets in a legacy section of the Fund (i.e. anything other than Retirement Builder) the same investment changes are applicable to you with one exception; the two legacy DB sections with DC assets will not have access to the new Mercer SmartPath investment strategies.

While the changes are being made, there is a period of time where you will not be able to make any changes to your investments. This is known as the blackout period. During the blackout period, the technical investment changes occur, where members' existing savings are moved into the new funds.

For the Fund, the blackout period will be from 2 August ? 18 September 2019.

You are able to change your contribution rate via Harmonise on the Options platform where you'll use Okta multifactor authentication (MFA) to log in. Please refer to the email "A New Way to Manage Your Benefits" issued to all staff at the beginning of November. If you have questions, visit the Options help and support page, or contact the Options Support Team by email or by calling +44 (0)330 808 5038.

Please note you will only be able to make changes to your contribution rate up to the 20th of each month.

4

Online: pensions.uk.

2. About the SmartPath strategies and the default option

Question

Answer

9. What is the default option?

The current default option is the Lifestyle 35 ? Annuity strategy.

After the changes take place, the default option will be the Mercer SmartPath Target Drawdown strategy.

Both default options invest your money in a range of funds on your behalf, focusing on growing your Individual Account early on in your career, then moving your money into lower-risk options to protect its value as you approach retirement. They target different ways to take your income in retirement. For more information, read the Investment Guide on pensions.uk.

10. What is my Normal Pension Date?

Your Normal Pension Date is age 65.

If you are in one of the Lifestyle or SmartPath strategies and you intend to retire at a different age, it is important that you notify the Administrators by 2 August so that your investments switch correctly.

11. What are the underlying funds used in the default option?

Please refer to the Investment Guide for more detail on the default option, including underlying funds and the automatic switching period.

12. What if the default option isn't suitable for me?

If you are currently invested in the default LifeStyle option and you feel that the new SmartPath default option no longer suits your circumstances, you may wish to choose from one of the other SmartPath options, or from the range of Self Select Funds.

You can do so by downloading an `Alternative Investment Selection Form' from pensions.uk. and returning the completed version to the address specified no later than 2 August.

13. If I decide to move to Self Select funds, is it possible to move back to the default option or the other SmartPath options in the future?

You can move between the two investment approaches as you like, however it is important to be aware that transaction charges may apply as a result.

You will not be able to move investments between the Self Select funds and the SmartPath funds during the period from 2 August ? 18 September 2019 while the changes are taking place.

14. What are the

The charges are shown in the announcement letter on

charges for the new pensions.uk.. They are equal to or lower than what

funds?

you currently pay.

Online: pensions.uk. 5

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