UUPS - About United Utilities

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GROUP INCOME PROTECTION SCHEME(GIP SCHEME)As a member of the Defined Contributionsection of UUPS you will automaticallybe covered by the GIP Scheme whichis designed to ensure that you receivea proportion of your salary if you areabsent for a prolonged period due toillness or injury.This section summarises the GIPScheme, the full cost of which is borne bythe Company and is deducted from theCompany contributions paid into UUPSon your behalf (please see page 8 formore detail). You therefore incur no taxliability for the cost of the GIP benefit.The GIP Scheme is currently insured withCanada Life which is a leading insurancecompany. Benefit payment will bedependant on any conditions imposed byand the requirements of Canada Life.Income BenefitIf you are away from work and satisfythe GIP Scheme criteria, then onceyou have been absent for a continuousperiod of 52 weeks, the GIP schemewill pay a benefit equal to 50% of yourPensionable Earnings applicable prior toyou becoming absent.In order to qualify for benefit, youmust be unable, by reason of sicknessor accident, to follow the materialand substantial duties of your ownoccupation and not be engaged in anyother occupation.A stricter definition of Incapacity will beimposed for certain licensed occupationsand occupations requiring specialistskills or high levels of fitness.The GIP Scheme pays the Company andthe Scheme Administrator. The Companycontinues to pay the employee via payroll.Pension and Life Assurance benefitThe GIP Scheme will also pay an amountto the Company to cover your own andthe Company’s contributions to UUPSin order that your pension and lifeassurance benefits are protected.National Insurance BenefitThe GIP Scheme will also pay a benefitto the Company to cover the Company’sNational Insurance contributions whilstyou are absent.Payment of BenefitBenefit will be paid to you, via theCompany’s payroll. On the anniversaryof the commencement of your benefit,and yearly thereafter, your benefit willincrease by the lesser of 5% and theincrease in the Retail Prices Index.Should you return to work and becomeabsent for the same reason within aperiod of 26 weeks, your GIP benefitpayment will resume immediately.Benefit will cease on your return to work,on your retirement, on you reaching age65, on your death or on you leaving theCompany.Partial DisabilityA proportionate benefit may be payablein the event of your returning to workon a part-time basis or to a lower paidoccupation with the Company. Medicalevidence and Company consent may berequired.Medical EvidenceBenefit payment will be dependenton the insurance company receivingsatisfactory medical evidence to supportthe claim made on your behalf andagreeing to pay the benefit. From timeto time during the course of a claim,the insurance company will review theevidence to make sure the claim remainslegitimate.If you join the UUPS after the date youare first eligible, the insurer may requiresatisfactory medical evidence beforeconfirming cover under the GIP Scheme.Leaving the CompanyShould you leave the Company withouta claim being in payment, you may havethe option to continue the policy, on anindividual basis with the insurer, withoutthe need to provide medical evidence.This must be effected within 30 days ofyou leaving employment.Termination or AmendmentAlthough the Company intends tomaintain the GIP Scheme in the future,it reserves the right to terminate theGIP Scheme or to amend the basis at anytime. You would be given appropriatenotice of this occurrence.16
State benefits and your UUPSpensionThe current State pensionarrangements are in twoparts: the Basic StatePension which almosteveryone receives atState Pension Age and theAdditional State Pension.The Defined Contributionsection of UUPS is notcontracted-out of theAdditional State Pensionwhich means you will earnadditional State benefitsin addition to your UUPSbenefits, whilst you arean active member of theDefined Contribution sectionof UUPS.HOW THE STATE PENSION IS MADE UPThe current State pension arrangementsare in two parts:BASIC STATE PENSIONThis is payable to almost everyone.The amount is set by the Governmenteach year but if there is a gap in yourNational Insurance contribution recordyou may not receive the full amount(contact the Department for Work andPensions if you wish to check, see page25). Women who have always paid themarried woman’s reduced rate NationalInsurance contributions will not receivethis pension. Your Basic State Pension isnot affected by your UUPS pension.ADDITIONAL STATE PENSIONThis is a pension, based partly onearnings, that is provided in additionto the Basic State Pension. The StateSecond Pension (S2P) replaced theState Earnings Related Pension Scheme(SERPS) from 6 April 2002.The Additional State Pension willbe paid from State Pension Age inrespect of employment during whichyou are not contracted-out of the Statearrangements including the periodduring which you are a member of theDefined Contribution section of UUPS.This is because the Defined Contributionsection of UUPS currently is notcontracted-out of S2P and means thatfull rate National Insurance contributionsare deducted from your pay whilst youare paying contributions into UUPS.You can elect to contract-out of S2Pon an individual basis. If you wish toconsider this option, you should seekadvice from an Independent FinancialAdviser.17
Page 1 and 2: UNITED UTILITIESPENSION SCHEMEMembe
Page 3 and 4: About this GuideThis Guide tells yo
Page 5 and 6: How the Defined Contributionsection
Page 7: JoiningMembership of the DefinedCon
Page 10 and 11: Ways to increase your benefitsYou h
Page 12 and 13: InvestmentYou have a number of choi
Page 14 and 15: Retirement benefitsThe following se
Page 18 and 19: Benefits payable on deathWhether yo
Page 20 and 21: Leaving UUPSIf you leave UUPS, fori
Page 22 and 23: Her Majesty’s Revenue and Customs
Page 24 and 25: OTHER PENSION BODIESA number of oth
Page 26 and 27: Glossary of termsSome of the words
Page 28: unitedutilities.com/pensions01925 2

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