SPRING 2025
Welcome to the latest edition of Pension Update, the newsletter of the TotalEnergies UK Pension Plan (the Plan).
In this edition, we have lots of updates to share with you about the Plan and the broader pensions landscape.
You can read the latest funding update, along with information on the State Pension and its impact on your TotalEnergies pension as well as how you are taxed. Additionally, we offer further support if you need it and we also encourage you to respond to the data verification exercise we will be running soon.
In this online version of Pension Update, you can read more articles about updates on:
You can also test your pension knowledge with our five-minute quiz.
Finally, please make sure you log into the Member Portal and download the Gallagher Guide app to manage your TotalEnergies pension online. Access details are at the end of the newsletter.
Rob White
Chair of TotalEnergies Pension Trustee UK Limited
In the coming weeks, we will be reaching out to confirm your personal details.
By confirming that our records are accurate, you can:
The Trustee works 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 yearly update, which was based on information at 30 June 2024, and compares it to the triennial valuation position at 30 June 2023.
The latest update shows that the Plan’s funding level fell over the year to 30 June 2024. The funding level at 30 June 2024 was 99%.
30 June 2024 |
30 June 2023 |
99% |
104% |
The funding target |
£2,257 million |
£2,172 million |
The value of assets |
£2,224 million |
£2,250 million |
The funding position |
Deficit of £33 million |
Surplus of £78 million |
The asset figures in the chart above do not include the Pension Accounts building up in the Defined Contribution (DC) Sections or money purchase additional voluntary contributions 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.
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 chart shows, the Plan’s funding level went down by about 5% over the year to 30 June 2024.
The main reason for the change was the further bulk annuity policy entered into in June 2024. This has changed the approach for placing a value on the assets and funding target of the Plan and now shows a small deficit at 30 June 2024.
The 30 June 2023 valuation revealed a technical provisions surplus of £78 million. After the bulk annuity policy was entered into in June 2024, there was an expected funding shortfall.
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. This means the funding level will reach 100%. These contributions will be paid at the following times:
January 2026 |
£18 million |
January 2027 |
£18 million |
December 2027 |
up to £39 million |
The further contributions will not be paid if they are not needed to fund the Plan’s benefits.
The Employers also pay contributions for members of the DC Sections as required under the Plan rules.
This newsletter does not look at the period after 30 June 2024. We will provide an update in next year’s newsletter.
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 gone out of business — the Pension Protection Fund may provide members with some compensation.
Finally, we must also confirm the following:
We recently published our regulatory report outlining our approach to climate-related risks and opportunities. This is in line with best practice guidance to help companies and investors understand their financial exposure to climate risk. You can read our dedicated report online.
Having an up-to-date Will is just one of the ways that you can be sure that people and causes you care about are looked after in the future.
A Will lets you choose where your money, assets and property should go to when you die.
The Free Wills month campaign works with a group of charities to give people aged 55 and over the chance to have their Wills drafted or updated at no cost by solicitors across the UK. Visit the Free Wills month website for more information.
Have you ever thought about how you and your family would manage your financial and medical affairs if you could not carry out everyday tasks for yourself? It is a good idea to plan ahead for a time when you might not be physically or mentally able to manage your own finances, including your pension.
A power of attorney is a legal document that allows someone to make decisions for you, or to act on your behalf if you are no longer able to manage your own affairs.
There are two different types of power of attorney:
You can only set up a power of attorney while you still have mental capacity to delegate, and they only come into effect if you are ever unable to carry out these tasks, so it’s good to plan ahead.
For more information about power of attorney, visit the Age UK website.
This is a broad term referring to legal documents that grant someone the authority to act on your behalf. There are different types of power of attorney, including the 'general' power of attorney, which is typically used for a specific period and can come into effect before you lose mental capacity.
When setting up an LPA, you can specify that someone can help you straight away or that the power will only come into force if you lose capacity, for example if you are diagnosed with dementia. In that case, you would continue to operate your financial affairs as usual, and the power of attorney would only come into effect if you received a diagnosis.
An LPA can cover decisions about your financial affairs. Find out more about how to set up an LPA or seek advice from a solicitor.
Preparing for retirement as early as possible can make all the difference in making sure you and your loved ones have financial security and peace of mind.
Talking to an independent financial adviser could help to give you peace of mind and the right information to make an informed choice. Find a registered financial adviser today.
When you retire, your pension is taxed as income, including the State Pension.
Here's what you need to know:
If you plan to retire in another country, make sure to check with HMRC to find out where your pension will be taxed. You can get more details on the Government website.
The Normal Minimum Pension Age (NMPA) is the earliest age most people can start withdrawing from their personal and workplace pensions.
It is currently age 55 but will increase to 57 from 6 April 2028.
We all need a helping hand from time to time. Gallagher, the Plan Administrator, is available to answer your questions and give you more information about the Plan.
You can also find additional support outside of the Plan to help you with your pension and finances.
Find out more about pension scams, including how to avoid them and which firms are regulated.
TPR may intervene in the running of pension schemes where trustees, managers, employers or professional advisers have failed in their duties.
Find out how much State Pension you could receive, when you could get it and how to increase it, if you can
The DWP is responsible for the UK's welfare, pensions, and child maintenance policies. It is the largest public service department in the UK.
This is to help with financial planning, health guidance, and to assess what your skills mean for your career and future.
TPO deals with complaints and disputes that concern the administration and management of occupational and personal pension schemes.
Now it’s time to grab a hot drink and test your pensions knowledge with our five-minute quiz:
a. Defined Benefit
b. Defined Bonus
c. Direct Benefit
d. Deferred Benefit
a. The amount of money in your pension pot
b. The length of your service and your salary
c. The performance of your investment
d. The contributions you make each year
a. 26
b. 42
c. 55
d. 57
a. 37
b. 57
c. 48
d. 55
a. The Pension Tracing Service
b. The Pensions Regulator
c. The Financial Conduct Authority
d. The Pensions Ombudsman
If you’d like to speak to someone about your Plan benefits, you should contact Gallagher, the Plan Administrator.
Gallagher (Bristol)
PO Box 319
Mitcheldean
GL14 9BF
TEpensionsadmin@ajg.com – please use this new email address going forward. If you have used totalenergies@buck.com to contact Gallagher recently, your query will still be picked up. The old email address will stay open this year to make sure nothing is missed.
To read general information about the Plan, go to our website.
Visit the Member Portal to view or update your specific information.
Remember our app, ‘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.
MoneyHelper is a free service from the Government. Its website has information and guidance about a range of money matters, including pensions and retirement.
If you’ve lost touch with a pension you had in the past, the Pension Tracing Service may be able to help.