Fidante Benefits Package

• The BA payment will be subject to personal NIC and income tax in the normal way (such as regular salary payments). • An example of how the BA works in practice is shown below. Example – Member A With Existing Fixed Protection • Member A has an annual basic salary of £125,000 and has accrued a large pension value. Member A previously applied for Fixed Protection 2016 to safeguard a higher LTA. • Member A selects the BA (instead of standard pension membership). This results in the following: ➢ Pre-deduction benefit allowance (BA) of £10,000 per year (£125,000 x 8%). ➢ Corporate National Insurance (NI) is not payable on pension. It is, however, payable on this type of allowance payment (i.e. cash payment). ➢ Consequently, this needs to be deducted from the BA as follows: (£10,000/113.8%) = £8,787. ➢ This BA of £8,787 per year (£732.25 per month) is added to Member A’s pay from April. This BA will be subject to income tax and personal National Insurance in the same way as salary. • The BA and PCW has been created to help only those genuinely affected by the legislation. They are strictly unavailable to any other members. • Members applying for the historic LTA related BA will be asked for copies of their Fixed Protection certificates (this can be provided to JMA). • Members applying for the TAA related PCW will be asked to prove that they are sufficiently impacted by the TAA – and that they have insufficient Carry Forward allowance remaining (this can be provided to JMA). • The BA does not form part of your contractual salary – it is a completely separate item on the payroll. In this way, the BA does not affect any future basic salary related pay changes or anything else linked to basic salary (e.g. Group Life, Group Income Protection). • In the event of a future basic salary change, the BA will be recalculated accordingly from the same calendar month. • The BA will start from the month of opt-in. • No requests for different levels of BA or PCW will be considered – the options are either standard Pension membership or the standard BA/PCW explained above. • A review period will be set for March each year. During this period, members will have the option to select PCW for the first time (if qualifying conditions are met) or switch back to standard Pension membership if the TAA is not going to apply in the following tax year. • IMPORTANT NOTE – all PCW and BA participants will not be asked to re-apply each year. If you have previously selected either option, it will be assumed that you wish to continue with your selection unless you advise to the contrary during the March review period. • The BA stops on cessation of your contract with Fidante. General Rules of the Fidante Benefit Allowance (BA) and Personal Contribution Waiver (PCW): • Fidante continues to provide the same level of contributions, just in the form of BA instead of pension contributions.

Member Action Required!

To select the PCW, you will need to complete the required Application ( click here ). Please email back to the Corporate Team at JMA corporate@jmurray.co.uk

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