Welcome to the latest edition of Pension Update, the newsletter of the TotalEnergies UK Pension Plan (the Plan).
Things are always changing, both in our Plan and in the broader pensions world, so we have a lot of updates to share with you.
We are conducting a data cleanse in preparation for the Guaranteed Minimum Pension equalisation (GMPe) exercise. If you’re affected, we may contact you to ask that you review and update your personal information. Accurate data is crucial for a smooth GMPe process and to ensure you receive the correct benefits. Please log in to the Member Portal to verify and update your details. Thank you in advance for your cooperation.
In the online version of Pension Update, you can read more articles about updates on:
Just a friendly reminder that our pensioner bulletin is still up and running, and guess what? You're also invited to take our fun cyber safety quiz!
I encourage you to visit the Member Portal to manage your TotalEnergies pension. Don't forget to check out the Gallagher Guide app, which has recently undergone a rebrand.
Wishing you a happy festive season.
Rob White
Chair of TotalEnergies Pension Trustee UK Limited
We work with the Principal Employer to make sure the Plan has sufficient funds to pay the benefits that members have built up in the DB Sections, whenever they need to be paid.
At least once every three years, the Plan undergoes a detailed health-check called a valuation. The valuation process helps us to understand:
To help us monitor the Plan’s progress in the years between valuations, we also ask the actuary to provide us with yearly updates.
This section includes the results of the actuary’s latest update, which was based on information at 30 June 2023, and compares it to the position at 30 June 2022.
The latest update shows that the Plan’s funding level improved by an estimated £42 million over the year to 30 June 2023. The funding level at 30 June 2023 was 104%.
30 June 2023 |
104% |
30 June 2022 |
101% |
30 June 2023 |
30 June 2022 |
|
The funding target |
£2,172 million |
£2,673 million |
The value of assets |
£2,250 million |
£2,709 million |
The funding position |
Surplus of £78 million |
Surplus of £36 million |
The asset figures in the table above do not include the Pension Accounts building up in the Defined Contribution (DC) Sections or money purchase Additional Voluntary Contributions (AVCs) in the Defined Benefit (DB) Sections.
The asset and funding target figures include the value of the bulk annuity policies we have taken out to increase the security of members’ benefits.
In June 2024, we also entered into a further policy with PIC, which is designed to eventually cover the monthly pension payroll for all other Plan pensioners, deferred members and their dependants.
Through these policies, PIC and Canada Life are now taking on certain risks that the Plan would otherwise have faced, such as the impact of difficult economic and investment conditions, and future changes in life expectancy.
As the table above shows, the Plan’s funding level rose by about 3% over the year to 30 June 2023.
The main reason for the improvement was the contributions the Employers paid to help make up the shortfall that was identified at the 2020 valuation. Rises in interest rates and gilt yields also reduced the value of the Plan’s assets and the funding target.
The 30 June 2023 valuation revealed a technical pensions surplus of £78 million.
As there is no longer a shortfall, no additional contributions are needed to help the funding level.
The Employers have agreed some further contributions to cover the cost of amending the insurance policies so they cover all pensions provided by the Plan in the future:
January 2026 |
£18 million |
January 2027 |
£18 million |
December 2027 |
Up to £39 million |
The additional contributions will not be paid if they are not needed to fund the Plan’s benefits.
This newsletter does not look at the period after 30 June 2023. We will provide an update in next year’s newsletter.
The Employers also pay contributions for members of the DC Sections as required under the Plan rules. |
The figures assume the Plan continues in its current form and that the Employers will continue to support it. This is known as the ‘going concern’ or ‘technical provisions’ basis.
The actuary is also required by law to work out what the funding level would be in the hypothetical situation that the Plan was wound up on the valuation date. This is known as the ‘full solvency’ position. If this happened, the Plan would need to pay an insurance company to provide the benefits that members have built up.
Insurance companies generally use lower-risk investments which give lower returns than the Plan aims to achieve. They also factor in a profit. As is the case with the ‘going concern’ funding level, the full solvency funding level can go up and down a lot. This is caused by factors such as changes in insurance company regulations and varying levels of competition between insurers.
The 30 June 2023 valuation revealed a shortfall on the ‘full solvency’ basis of £76 million (equivalent to a funding level of 97%).
This is a significant improvement on the position at the 2020 valuation, when the shortfall on the ‘full solvency’ basis was £1,104 million (equivalent to a funding level of 75%).
In an extreme situation — for example if the funding position deteriorated significantly and the Plan is wound up because the Employers have become insolvent — the Pension Protection Fund may provide members with some compensation.
Wherever you’re up to in your career, it’s important to understand the benefits of long-term pension saving and managing your money.
Throughout working life
Get to know your TotalEnergies pension. Read through the Plan website to understand how your pension works and the benefits you receive. Have you saved enough? Check the Member Portal to see and familiarise yourself with your accrued DB benefits. You should also review any other pensions you may have elsewhere.
Thinking about retirement
Have you saved enough? Consider how much income you will need in retirement. Useful tools such as MoneyHelper’s Budget Planner are available for free online.
You can also use the online State Pension calculator to see how much you might be eligible to receive.
Understand your retirement income options. Read up on your options for taking your pension.
Get financial advice. An independent financial adviser can help you make the best decision regarding your benefits.
Time to retire!
Contact Gallagher, the Plan Administrator, to start the process of taking your benefits from the Plan.In retirement
Don’t forget to keep in touch! We need to make sure we still have the correct contact and bank details for you so that we can keep paying your pension and get in touch with you if needed.
Keep using our online services. You can view your pension payslips on the Member Portal, as well as using it to update personal details, including the names of anyone you’d like to nominate as a beneficiary in the event of your death.
Sometimes it helps to see your pension from someone else's perspective. We've provided examples of typical members who might be facing some of the same questions and decisions as you.
Don’t forget that we can't offer financial advice. These case studies are just for guidance. Consider your own circumstances and seek independent financial advice before making major pension decisions. You can learn more from the MoneyHelper website, a free government service. MoneyHelper can also help you find an independent financial adviser local to you.
“Hi, I’m Max. I’m 45 and I’m a member of both the Defined Benefit and Defined Contribution sections of the Plan. I’ve got pension pots elsewhere and I’m finding it hard to keep track.”
What we’d say to Max:
“Hello, my name is Jeff. I’m turning 60 and have worked for TotalEnergies for 25 years. My health isn’t what it was, and I want to make sure that if the worst should happen, my loved ones are taken care of.”
What we’d say to Jeff:
We caught up with Gavin, our Senior Pensions Specialist & Trustee Secretary, to uncover the inspirations behind his career choice, the rewarding aspects of his work, and his strategies for keeping on top of things in the ever-changing world of pensions.
My career began in the insurance sector, but as that chapter came to a close, an opportunity arose to work on a review of mis-sold personal pensions. This experience acted as a gateway for me into pension administration, where I have remained ever since.
One of the most gratifying aspects of my work is the ability to assist members in making informed decisions as they approach retirement. There's a deep sense of fulfilment that comes from knowing that my efforts can significantly impact their financial security and peace of mind during their golden years.
Back in December 2021, the Plan decided to close the DB section to future accrual. This was a significant change, and it was crucial to consult with the members in a clear and concise manner.
To ensure the membership understood the reasons behind this decision, we established a robust support system. We provided financial advice support and enlisted the help of our in-house pension team.
This approach was instrumental in helping the members comprehend what the new DC arrangement meant for their future retirement planning. By being transparent and offering dedicated support, we were able to help the members come to terms with the change and successfully transition to the new arrangement.
Staying updated with the latest regulations and trends in the pensions sector is crucial for my role. I regularly participate in industry conferences, subscribe to relevant publications, and engage in continuous professional development with the Pensions Management Institute along with support from the Trustee advisers.
Regulatory change can significantly impact my work, as they often necessitate adjustments in our processes and policies to remain compliant and provide the best possible service to our members.
We are pleased to announce that we have completed our intended changes to the Plan’s lifestyle strategies for DBAVC members. In summary, these were:
We have now written to affected members to confirm where their DBAVCs are invested following the changes. If you still want to find out more, the Investment Changes hub on our website remains live – and don’t forget to visit the Member Portal to keep an eye on how your Pension Account is invested.
As we have reported in previous editions of Pension Update, some members’ benefits will include a GMP due to being contracted out of the State Earnings Related Pension Scheme (SERPS). GMPs are different for men and women, and a court case has confirmed that schemes need to equalise benefits built up between 17 May 1990 and 5 April 1997 to take account of these differences.
We’re continuing to work on this with our advisers and hope that, in the near future, we’ll be able to tell you if there will be any adjustment to your benefits. However, this will only affect members with benefits which were built up during the relevant period. Please note, for the majority of affected members any adjustment to their pension is likely to be very small.
Since our DB newsletter of March 2024, the Plan has, as you know, made a major investment in relation to the DB Section of the Plan by buying another buy-in insurance policy with the Pensions Insurance Corporation (PIC). This new PIC policy has added to the security of members’ benefits in the longer term. This project took up a large part of the Trustee’s time over the last year and especially in the first quarter of 2024. Having successfully achieved this step in the journey of the Plan we have revisited the Trustee Board size and composition and thought about the workload and governance needed.
The Plan Trustee is now a Board of seven with the following Trustee Directors:
We have over the last 12-month period said goodbye to a number of Trustee colleagues, who have left the Company and are no longer serving Trustee Directors or have had to step back from their Trusteeship due to work commitments. We would like to thank them all for their service.
On the employer side this is Chris Milligan, Nick Parr and very recently, Shaun Kenny and on the Member Nominated side, Ben Merchant and Mel Cook. The Trustee has throughout been mindful of the pressures of the buy-in transaction in relation to the DB Section and how adding new Board members during that time would have been asking a lot of them. The Trustee discussed with the Principal Employer (PE) the fact that the resignations from the Board were aligned in number on the Employer and Member Nominated Directors side (until Shaun left). Finally, the Trustee would like to thank Brice Metois, who was an Employer Nominated Trustee until his recent promotion. The PE asked if Brice could serve, going forward on the PE Board, and he is now doing so and has been replaced on the Trustee Board by his colleague Hoan-Phi Edet.
The Trustee has been keeping a constant eye on the balance of the Board and the ability for the Trustee to operate effectively with a smaller Board.
The Trustee agreed in January that there was no impact on members in carrying on with a smaller Board which was balanced in favour of Member Nominated Directors (MNDs). The Trustee decided to revisit this decision once the DB Section buy-in transaction had completed. The Trustee is obliged by law to have at least one third of the Board represented by MNDs and we do comply with that requirement. It has been agreed with the PE that a Trustee Board of seven (as named above and as per the split above four member and three employer) is well placed to oversee the Plan and the demands on the Trustee in governance terms, on both the DB and DC sides, going forward. The Trustee and PE are happy that a smaller Board will still have the capacity and skill set to oversee the Plan.
The Plan’s MND selection and nomination arrangements (MND Policy) did provide for candidates who were not successful in the last process run for MNDs to be put on a reserve list. We have contacted all the individuals who were put on the reserve list to see whether they would, were a vacancy on this new Trustee Board to arise in the foreseeable future, be willing to serve as a Trustee. We are happy to confirm that three individuals are happy to remain on the reserve list.
This change to the overall size of the Trustee Board has been reflected in the Trustee’s MND Policy and we look forward to the challenges of 2025, whatever they may be as a strong and committed Trustee Board.
On 30th October 2024, Chancellor Rachel Reeves delivered the first Budget by the new Labour government. Here’s a breakdown of the key pension points and what they could mean for you.
The State Pension will increase
The Budget confirmed the government’s commitment to the State Pension triple lock. State Pensions will therefore increase by 4.1% (in line with earnings growth) in April 2025. This will bring payments to £230.25 a week if you receive the full amount of the new State Pension, and £176.45 a week if you receive the full amount of the old Basic State Pension.
Pension Credit will increase
Pension Credit provides a top-up to a minimum amount for pensioners on low incomes. The Pension Credit Standard Minimum Guarantee will also see a 4.1% increase from April 2025, to £11,850 a year for a single pensioner.
The government is actively working to boost Pension Credit take-up. This is particularly important if you’re eligible to receive the Winter Fuel Payment, which is being means-tested from 2024/25 and could be worth £200 for eligible households, or £300 for eligible households with someone aged over 80. If you’re receiving Pension Credit, you’re automatically eligible for the Winter Fuel Payment.
Your pension may be included in Inheritance Tax (IHT)
IHT is a tax on the estate (the property, money, and possessions) of someone who has died. In the past, pension savings have not typically counted towards the value of a person’s estate for IHT purposes – so, for example, if you died before retiring and had pension savings worth £100,000, that sum could be passed to your dependants tax-free without being factored into IHT calculations.
From April 2027, inherited pensions will be included in IHT. More details are still to come regarding how this will work in practice, but it may mean more people’s estates exceed the IHT thresholds and therefore trigger a tax payment.
Here’s a reminder of the IHT thresholds:
Find out more about IHT on the GOV.uk website.
Rules around overseas transfers have changed
If you want to transfer your pension to a scheme outside of the UK, you’ll need to check how much tax you’ll pay. Visit the GOV.uk website for further information.
As ever, the Budget will affect some people more than others – but whatever your situation, we’d like to take the opportunity to remind you to check in on your Plan pension and make sure you understand what it’s worth. The easiest way to do so is via our Member Portal.
Pensions Dashboards will help millions of people plan for their retirement by showing them all their pension savings on a single combined display. This will also enable people to reconnect with pension schemes that they’ve lost contact with or find missing savings they’d forgotten about.
Pensions Dashboards were due to be available for use in 2024, but there have been a number of delays to the project. The deadline for pension schemes to connect to Pensions Dashboards has been put back to 31 October 2026.
This doesn’t necessarily mean you’ll have to wait that long until you can use a Pensions Dashboard, but if you access one before that date, it won’t necessarily show all of your pensions, because not every scheme will have connected to the system.
It’s important to remember that the priority is to get things right. Trustees and administrators need to make sure that they hold the right data in the first place. Dashboard providers need to make sure that the information is displayed in the right way. And everyone needs to make sure that all of the interfaces and connections are in place so that when you log on, the dashboard will be able to quickly and accurately find your pensions and show them to you.
Gallagher, our Plan Administrator, is making good progress with the necessary data checks and systems developments required to connect to Pensions Dashboards.
How can you help in the meantime? Dashboards will work by using your personal data to find your pensions, so it’s important that any pension schemes you’re in have the correct details on file for you. You can check that we have the right ones by logging on to your Member Portal. It's also a great way to keep on top of your pension planning.
If you have some old pensions that you’ve lost contact with, perhaps from a previous employment, you can use the Pension Tracing Service to find out how to get in touch with them. You’ll then be able to make sure that they have the right information for you so that those benefits show up when you use a Dashboard.
Your online pension services
We’re constantly looking for better ways to help you to manage your pension. Here are three great online tools to help you do just that:
The Plan website is a great first port of call for any general questions you have about the Plan and how it works.
We put regular news updates on the website, so it’s worth visiting from time to time to make sure you’re aware of any matters that might affect your pension planning, for example changes to pensions legislation.
The Member Portal lets you manage your pension easily and securely. Use it to update your details, view your pension savings and name beneficiaries. Not all members can generate retirement quotes yet, but if you can, you'll see an option for it in the Portal.
If you haven't registered, do it today! Visit buckhrsolutions.co.uk/totalenergies and select ‘First time user?’ on the login page. Enter your National Insurance number, Surname, and Date of birth to get started.
The Plan’s app has now been rebranded as ‘Gallagher Guide’. It allows you to view your Pension Account online 24/7 using your handheld device.
To download it, simply go to the Apple Store or Google Play and search for ‘Gallagher Guide’. You’ll need to have already registered for the member Portal in order to use the app, but you’ll be able to use your existing username and password combination. When setting up the app, you’ll need to enter ‘TotalEnergies’ as the Client. If you’re struggling to remember your username and/or password, please visit the Member Portal and select ‘Forgotten your details?’.
If you die while you’re a member of the Plan, there may be some benefits payable to your dependants. It’s up to the Trustee to decide who receives any cash lump sum death benefits, and they will consider your wishes.
That means it’s really important that you complete an Expression of Wish form which lets the Trustee know who you would like to receive any payments – and keep your form up to date if your circumstances change.
You can update your details as often as you like, the Trustee will normally only consider your latest update.
The easiest way to do so this is on the Member Portal.
If you haven’t already registered, don’t worry, it isn’t difficult. We’ve got a set of animations in our video library that walk you through the registration process and some of the other tasks you can do online.
For further information on death benefits, visit the Benefits if I die page on the Plan website.
As you approach retirement, it’s crucial to understand the rules and regulations surrounding your pension benefits.
One key rule to be aware of is that you have to begin taking your pension benefits by the age of 75.
If you don’t do this, there could be significant tax implications. This requirement also helps in estate planning. By accessing your pension benefits, you can better manage your assets and potentially reduce the tax burden on your beneficiaries. It’s a strategic move that aligns with both your financial goals and regulatory compliance.
The Pensioner Bulletin is a valuable resource that we upload to our Member Portal every two months. It includes helpful articles on:
We also bundle up recent editions and send hard copies to our pensioner members in the post a couple of times each year, but if you want to make sure you’ve got the latest version, the Member Portal is always the best place to look.
Shopping, interacting and dealing with business on the internet is easier than ever before and many of us are comfortable making purchases, decisions and more online. But are we doing so safely?
When a person or company approaches you, treat it with the same caution as you would if you were approached on the street by someone you didn't know. Most of us would only take them seriously if we trusted them or could verify that their company was legitimate.
If you get a message about your finances, remember:
Think twice before opening that suspicious email or text. They can hide viruses or access your systems, gaining potential valuable information like passwords and banking details. It's better to be safe than sorry. If you suspect you’ve encountered a scam, report it to Action Fraud at actionfraud.police.uk or call 0300 123 2040.
Cyber fraud in the UK is unfortunately becoming more common, and the techniques more sophisticated. This is a serious issue that can have devastating consequences for individuals’ finances, including pensions.
Here’s a short quiz to help you learn some tips and tricks…
a. Using a combination of uppercase and lowercase letters
b. Including numbers and special characters
c. Using personal information like birthdates or names
d. Repeating the same password for multiple accounts
a. Enabling two-factor authentication
b. Sharing your passwords with trusted friends
c. Using public Wi-Fi networks for sensitive transactions
d. Clicking on suspicious links in emails
a. Checking for a padlock icon in the browser's address bar
b. Ignoring the website's security certificate
c. Providing personal information on any website without hesitation
d. Sharing your credit card details on any website that asks for it
a. A type of fishing sport
b. A method to catch online scammers
c. A fraudulent attempt to obtain sensitive information
d. A secure way to share personal data
a. Regularly updating your operating system and antivirus software
b. Downloading files from unknown sources without scanning them
c. Disabling your firewall for better internet speed
d. Clicking on pop-up ads to claim prizes
If you’d like to speak to someone about your Plan benefits, you should contact Gallagher, the Plan Administrator.
To read general information about the Plan, go to our website, pensioninfo.totalenergies.uk
To access the Member Portal and view your specific information, go to the “View my pension online” section of the website.
Don’t forget our app, now rebranded as ‘Gallagher Guide’, where you can also view your personal details. Go to your app store and search for ‘Gallagher Guide’ to get started. Your registration details will be the same as the Member Portal, so you’ll need to make sure you’ve registered there first.
You can get general help and advice about pensions from MoneyHelper, a free service from the Government.
If you’ve lost touch with a pension you had in the past, the Pension Tracing Service may be able to help.