RHM Pension Plan 35 and Plan 45 - RHM Pension Scheme - UK.com

◆ Tax
36
Tax and legal matters
All pension payments (including the
State Basic Pension) are treated as
earned income, just like your pay, and
are subject to tax through the PAYE
system in the same way. Once you
become a pensioner, you will receive
a pension pay-slip with your first
payment and subsequently whenever
your net monthly pension changes by
more than £1 a month. This will
show your net pension payment and
any tax deducted from your total
income.
◆
Inland Revenue
The RHM Pension Scheme,
covering Plan 35 and Plan 45, has
been approved by the Inland
Revenue under the terms of the
Income and Corporation Taxes Act
1988. As a result, the company and
the members receive full tax relief
on their contributions to the
Scheme. Also, the income and
capital gains of the Scheme are
exempt from most UK taxes.
In return for these reliefs, the
Inland Revenue imposes certain
limits on members’ contributions
and on the benefits which may be
paid. The Trustees have agreed to
comply with these limits as part of
the conditions for tax approval of the
Scheme. You will be notified if your
benefits are affected by these limits.
There is an upper limit on the
total earnings which can count for
pension purposes. For 2001/2002,
this limit is £95,400.
◆
Amendment or
discontinuance
Although the intention is to
continue Plan 35 and Plan 45
indefinitely, future conditions cannot
be foreseen. The Trust Deed,
therefore, provides that the Principal
Company (RHM Limited) has the
power to discontinue the Plans or
amend them at any time in the
future. You will be advised of any
significant changes to the Plans. No
amendment or discontinuance will
adversely affect the benefits already
earned.
In the unlikely event of The
RHM Pension Scheme being
discontinued, the Trustees would
have to use the assets of the Scheme
to provide benefits for the members
and their dependants as laid down in
the Trust Deed & Rules. If the assets
of the Scheme were insufficient to
pay all the benefits, each employer in
the Scheme would be obliged to
make good the shortfall insofar as
legislation requires.