ACTIVE DC MEMBERS

ABOUT THE PLAN

In this type of pension, the income you have at retirement depends on how much you and Caterpillar pay into the Plan.

There are three sections to the UK Caterpillar Defined Contribution Pension Plan: Caterpillar GB for employees on the UK mainland, and two Northern Ireland sections for Caterpillar Northern Ireland and Caterpillar Logistics employees who transferred their benefits to the GB pension plan in April 2015.

There are some differences between the sections and these are identified on the relevant section page below.

A TAX-FREE WAY OF SAVING FOR RETIREMENT

You don’t pay any income tax on your pension contributions (up to certain limits) and, if you pay by salary sacrifice you will also pay less National Insurance.

A GENEROUS COMPANY CONTRIBUTION

New employees are automatically enrolled into the DC Plan with an employee contribution rate of 3%. However, you may choose to pay more than this and the Company will double-match your contributions when you pay up to 5% of salary, so you could receive a contribution of up to 10% of salary from the Company.

A PENSION WHEN YOU RETIRE

In the DC Plan, you have flexibility to decide how and when to use the money that has built up in your pension account. Caterpillar has nominated a specialist broker (Hargreaves Lansdown) to help you search the market for the best retirement product for you. You don’t have to use the Hargreaves Lansdown Retirement Service and can appoint your own financial adviser if you prefer. However, Caterpillar won’t pay for financial advice so it’s up to you to meet the cost of this advice if you wish to take it.

FINANCIAL PROTECTION IN THE EVENT OF DEATH OR ILLNESS

For pension plan membership prior to and on 31.5.2020 you will be covered for nine times your basic annual pay or PHI incapacity benefit (as applicable), plus the value of the Pension Account.

For pension plan membership on or after 01.06.2020 you will be covered for five times your basic annual pay or PHI incapacity benefit (as applicable), plus the value of the Pension Account.

Non-pension plan members will be covered for one times basic pay, but will not be covered for PHI incapacity benefits.

THE FLEXIBILITY TO INVEST YOUR PENSION ACCOUNT – OR TO LEAVE THE INVESTMENT DECISIONS TO THE DEFAULT FUND

We have produced an investment guide that explains why and how your account is invested. Click here to read it.

For a summary of Plan benefits:

CLICK HERE

A TAX-FREE WAY OF SAVING FOR RETIREMENT

You don’t pay any income tax on your pension contributions (up to certain limits) and if you pay by salary sacrifice you will also pay less National Insurance.

COMPANY CONTRIBUTIONS

The Company pays a fixed contribution of 6%. The employee contribution rate is set as a default to 6%. You can tell us if you want to pay in more or less than 6%, but your contribution can’t be lower than 3%, which is the minimum contribution within the Plan.

A PENSION WHEN YOU RETIRE

In the DC Plan, you have flexibility to decide how and when to use the money that has built up in your pension account. Caterpillar has nominated a specialist broker (Hargreaves Lansdown) to help you search the market for the best retirement product for you. You don’t have to use the Hargreaves Lansdown Retirement Service and can appoint your own financial adviser if you prefer. However, Caterpillar won’t pay for financial advice so it’s up to you to meet the cost of this advice if you wish to take it.

FINANCIAL PROTECTION IN THE EVENT OF DEATH OR ILLNESS

With effect from 01.06.20 all Northern Ireland pension plan members will increase cover from four times your basic annual pay to five times basic annual pay/Salary Continuation Scheme (if applicable), plus the value of the Pension Account.

Non-pension plan members will be covered for one times basic pay, but will not be covered for Salaried Attendance Allowance.

THE FLEXIBILITY TO INVEST YOUR PENSION ACCOUNT – OR LEAVE THE INVESTMENT DECISIONS TO THE DEFAULT FUND

We have produced an investment guide that explains why and how your account is invested. Click here to read it.

Other than the differences mentioned above, in general, benefits are the same as the UK Defined Contribution Pension Plan.

For a summary of Plan benefits:

CLICK HERE

A TAX-FREE WAY OF SAVING FOR RETIREMENT

You don’t pay any income tax on your pension contributions (up to certain limits) and if you pay by salary sacrifice you will also pay less National Insurance.

COMPANY CONTRIBUTIONS

The Company pays a fixed contribution of 6%. The employee contribution rate is set as a default to 3%. You can tell us if you want to pay in more than 3%, but your contribution can’t be lower than 3%, which is the minimum contribution within the Plan.

A PENSION WHEN YOU RETIRE

In the DC Plan, you have flexibility to decide how and when to use the money that has built up in your pension account. Caterpillar has nominated a specialist broker (Hargreaves Lansdown) to help you search the market for the best retirement product for you. You don’t have to use the Hargreaves Lansdown Retirement Service and can appoint your own financial adviser if you prefer. However, Caterpillar won’t pay for financial advice so it’s up to you to meet the cost of this advice if you wish to take it.

FINANCIAL PROTECTION IN THE EVENT OF DEATH OR ILLNESS

With effect from 01.06.20 all Northern Ireland pension plan members will increase cover from four times your basic annual pay to five times basic annual pay/Salary Continuation Scheme (if applicable), plus the value of the Pension Account.

Non-pension plan members will be covered for one times basic pay, but will not be covered for Salaried Attendance Allowance.

THE FLEXIBILITY TO INVEST YOUR PENSION ACCOUNT – OR LEAVE THE INVESTMENT DECISIONS TO THE DEFAULT FUND

We have produced an investment guide that explains why and how your account is invested. Click here to read it.

For a summary of Plan benefits:

CLICK HERE

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