DECEMBER 2024
Just starting out
Decide how much to save. Ensure you’re saving enough to build up an adequate savings pot at retirement. Remember the value of compound growth.
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.
In the online version of Pension Update, you can read more articles about updates on:
And finally, 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
Whether you’re starting out in your career, mid-way through your working life, or approaching retirement, it’s important to understand the benefits of long-term pension saving and managing your money.
Just starting out
Decide how much to save. Ensure you’re saving enough to build up an adequate savings pot at retirement. Remember the value of compound growth.
Throughout your working life
Understand your investments. Make sure they match your retirement goals and how you’d like to take your benefits from the Plan.
Thinking about retirement
Have you saved enough? As retirement approaches - check what you have by logging into the Member Portal and review any other pensions you have. 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 make the right decision for you.
It’s time
Contact Gallagher, the Plan Administrator, to start the process of taking your benefits from the Plan.
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 on the MoneyHelper website, a free government service. They can also help you find an independent financial adviser local to you.
“Hi, I’m Sydney. I’m 35 and I’m a member of Defined Contribution section of the Plan. I’ve got pension pots elsewhere and I’m finding it hard to keep track.”
What we’d say to Sydney:
“Hello, my name is Sadie. 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 Sadie:
Kate Horan - Pensions Administration Co-ordinator
We caught up with Kate, our Pensions Administration Co-ordinator, to uncover the inspirations behind her career choice, the rewarding aspects of her work, and her strategies for keeping on top of things in the ever-changing world of pensions.
I started my career in payroll, occasionally working with pensions as well. After 20 years in payroll, an opportunity arose for me to transition fully into the pensions field, and I embraced the change. Now, I still have the chance to interact with members, but on a more personal level. I enjoy assisting them in understanding their options.
The main challenge I face is when members ask me for advice. I am unable to provide advice; I can only inform them of the options available with their Pension Accounts during their working years or at retirement. However, there is one recommendation I can make: if you need further advice, you should consult an independent financial adviser.
I regularly go to industry events like conferences and webinars. I also read a lot of email updates we get. Sometimes, it's tough to explain changes when they've just been announced in a headline and the details come out later.
Compound growth can significantly benefit pension savers over the course of a career. When your Pension Account grows in value, this growth gets reinvested, allowing your money to generate even more. While investment growth is never guaranteed, the longer you leave your money in your pension, the more time it will have to increase in value, potentially leading to a larger pension pot.
The earlier you start investing in your pension and the longer you leave it, the greater the compound returns. Therefore, it's a good idea to start saving as early as possible.
Even if you can't save a large amount at the moment, investing what you can is still beneficial. As you’re part of the DC Section, you will pay a percentage of your salary into your Pension Account. In return, the Employer will also contribute. The money you pay in is calculated before tax – so paying into the pension is a tax-efficient way of saving for the future.
How much you and the Employer pays into your Pension Account will depend on which Section you’re in. Visit the Member Portal to see how much you and the Employer contribute.
When you combine these contributions with the power of compound growth, it's easy to see how even small amounts can grow significantly over time.
Imagine if you and TotalEnergies together contributed £1,000 a year into your Pension Account over a ten-year period, and there was consistent investment growth of 5% each year.
At the end of the ten-year period, the first £1,000 would be worth £1,629, having had ten years of compound growth.
£1,000 invested annually in your Pension Account over ten years
£3,207 after ten years of growth
£13,207
£1,000 invested annually in your Pension Account over ten years
£3,207 after ten years of growth
£13,207
The £1,000 for the second year would only have had nine years of growth, so it would be worth £1,551.
When you add all the numbers up, you get a figure of £13,207. That’s £10,000 of contributions and £3,207 of investment growth.
Now imagine if you did nothing for the first nine years and only made a contribution of £10,000 in the tenth year. At the end of that you’d have £10,500 – almost £3,000 less than if you’d started earlier and benefitted from compound growth! It really can make a big difference!
Please note that investment growth is not guaranteed, and the value of your Pension Account can go down as well as up.
We are pleased to announce that we have completed our intended changes to the Plan’s lifestyle strategies for DC members. In summary, these were:
We have now written to affected members to confirm where their savings 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.
Since the DC newsletter of March 2024, the Plan has seen changes to the Trustee Board and we wanted to update you on those changes.
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/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.
Your contributions won’t be affected by increases to employer National Insurance contributions (NICs)
You may have heard that employers will need to pay more NICs as a result of the Budget.
If you pay into your Pension Account through Salary Sacrifice you receive tax relief on the money that you pay in. The change to employer NICs will not change the amount you pay.
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 four 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.
You should note that the life cover you receive as a Plan member also ceases automatically when you reach the age of 75.
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.