DC Plan members were recently sent information about the planned changes. You can view a copy of the letter and Questions & Answers (Q&A) document here.

The current default fund (the Lifestyle – Annuity option) works on the assumption that retiring members will want to buy an annuity with their retirement account. However, there has been a dramatic fall in the number of members buying annuities – not only in our Plan, but across the UK.

As a result, the Trustees, on the advice of their investment consultants, have changed the default fund to the Lifestyle – Flexible Drawdown option.

There will also be some changes to the timing of when your account switches out of one type of underlying investments into another, which are explained in the letter and Q&A.

Everyone who is in the existing default fund and more than two years from their target retirement age will be moved into the Lifestyle – Flexible Drawdown option from 29 August 2017 – unless you tell us you want something different to happen to your investments by 6pm on 17 August 2017, using the member website. People within two years of retirement date will remain in the Lifestyle – Annuity option unless they tell us they want something different to happen by using the member website.

Between 18 August - 12 September 2017, no one will be able to make investment changes. After this blackout period, you will be able to change your investments as normal at any time.

If you wish to check where your savings are currently invested, or want to opt out of the switch into the new default fund by 17 August 2017, please log into your account at www.caterpillarpensions.co.uk