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Winter 2011
elements
The newsletter for members of the BASF UK
Group Pension Scheme (defined contribution section)

Welcome
Welcome to the Winter edition of Elements, the newsletter for the BASF UK Group
Pension Scheme. The aim is to bring you information about what’s happening in
your pension scheme and in the wider world of pensions.
We include a summary of the latest Report & Accounts for the year ended 31 December 2010,
which showed an increase in the DC fund value of around £9 million.
It has continued to be a difficult time for investments. On page 4 you can see the
performance of all the DC funds up to September 2011. Returns had been positive as at
June 2011, but the world economic crisis has had a negative impact during the last few
months. Remember that you can also find the latest information about your funds at any
time on ‘openweb’ - see page 7.
There’s been a lot happening in terms of Government action on pensions, including
changes to pension tax allowances, the phasing out of the default retirement age and a
proposal for a flat rate State pension. The latest developments are summarised on pages
8 to 10.
I hope you find Elements informative and interesting. If you have any questions
about the contents, please get in touch with the Pension Department – contact details
are on the back cover.
Pam Taylor
UK & Ireland Group Pension Manager
Changes to the Scheme
Following the end of the consultation process on 13 May 2011 and after considering all
the feedback received, the Company has set out its plans for the closure of the DB
section for future service benefits and the revised DC section, which will come into effect
on 1 April 2012. All affected members have received a booklet giving an overview of the
changes. A copy is also available on the pension website. Please note that deferred
members are NOT affected in any way by these changes.
A series of workshops for current employees will be taking place in the six months from
October 2011 to March 2012, covering the revised DC section and the benefits it
provides. It is important that you attend these workshops to fully understand how the
changes will affect you. The first wave of workshops have now been completed
with Workshop 2 starting in January 2012.
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Financial highlights
You can see the latest full Report & Accounts on the pension website
(http://ukpensions.basf.co.uk). Or contact the Scheme administrators, HS Admin,
if you would like to be sent a copy.
The figures below show the position as at 31 December 2010 and include the assets
transferred from the Sorex Plan into the DB section. The BASF UK Group Pension
Scheme includes a defined benefit section and a defined contribution section.
Money in, money out
DeFIneD ConTrIBUTIon (DC)
At the end of the year (31 December
2010), the DC section of the Scheme
was worth over £147 million, an
increase of more than £9 million
over the year.
During the year, BASF paid in
£2.9 million and members paid in
nearly £1.3 million (including AVCs)
During the year, the Scheme paid out
£8.7 million (on things like annuities,
lump sums and transfers out).
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DeFIneD BeneFIT (DB)
At the end of the year (31 December
2010), the DB section of the Scheme
was worth almost £400 million,
an increase of around £21.5 million
over the year (including £5.4 million
from the Sorex Plan).
During the year, BASF paid in almost
£1 million and members paid in
£0.3 million (including AVCs).
During the year, the Scheme paid out
£19.2 million (on things like pensions,
lump sums and transfers out).

Investment update
The DC assets are managed by Legal & General using their range of pooled
investment funds. Members either choose the LifePlan or the FreePlan approach.
With LifePlan, your pension account is invested automatically in funds that change from
equity (share) based investments to a mixture of bonds and cash depending on how far
away you are from your target retirement age. Alternatively, you can select your own fund
choices as part of the FreePlan approach, splitting the money in your account between
any of the funds available or just using a single fund as you prefer.
Investment performance to 30 September 2011
Fund
LifePlan funds
Performance to 30 September 2011
One year Three years (pa)
Global Equity (50:50) Fund -5.8% 4.3%*
Pre-Retirement Fund 4.7% 12.1%*
Cash Fund 0.6% 0.9%
FreePlan (includes the above
funds plus the following):
Balanced World (ex UK) Equity Fund -8.4% 3.6%*
Ethical Global Equity Fund -4.0% n/a
UK Equity Index Fund -4.3% 6.3%
Property Fund 7.9% n/a
Balanced Bond Fund 5.2% 6.6%*
*Please note that the assets making up these funds have changed during the last three years.
Please remember past performance does not guarantee future performance.
Full investment performance information is available via the pension website
http://ukpensions.basf.co.uk, where all active and deferred members can also find
much more information about the Legal & General funds on offer. You can also view the
‘openweb’ site using the details shown on page 7.
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Who’s in the Scheme?
The total membership of the Scheme was 7,029 on 16 September 2011.
The figures for the membership categories at that date were:
Active members – DB 87
Active members – DC 560
Deferred members – DB 1,735
Deferred members – DC 2,115
DB pensioners 2,532
Don’t forget to attend the forthcoming Pension Workshops
for active members! See page 2 for more details.
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Trustee update
Geoff Dobson, who joined as a Company Appointed Trustee Director in August
2009, resigned from the Board in November 2010. We would like to thank Geoff for
all his hard work and valuable contributions to the work of the Trustee and wish him
well in the future.
The current Trustee Directors are:
Company Appointed
Nick Fitzpatrick - BESTrustees
Ruth Constable (Cheadle)
Dennis Holmes (Alfreton)
Ray Scott (DC pensioner)
Shirley Wilson (Cheadle)
Member nominated
Ken Norrie (DB pensioner)
Patricia Spreull (DC pensioner)
Trevor Stanley (DB pensioner)
Administration update
Following the sale of AEGON Trustee Solutions to Goddard Perry in October 2010,
HS Admin have reverted to their previous company name and, following a full review
of service, will continue as the administrators for the Scheme. Their contact details
can be found on page 12.
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Online access for DC members
We are pleased to announce that we have now launched a new website called
‘openweb’ to give you, as an active or deferred member of the BASF UK Group
Pension Scheme, instant access to details of your pension benefits.
The new system replaces the existing ‘Mybenefits’
system and also provides a much easier to use
retirement modelling facility. If you have not received
your log in details, please contact HS Admin using
the contact details on page 12.
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Your roundup of the
latest pensions news...
Default Retirement Age
This was the age at which employers could
require their employees to retire, regardless
of their circumstances, and was set at age
65. However, the Government has
implemented the removal of this default
retirement age from 1 October 2011.
The move is one of a number of measures
the Government is taking to encourage
people to work for longer against the
backdrop of a population living longer,
healthier lives. In some cases the
Government has said that employers will still
be able to operate a compulsory retirement
age if they can ‘objectively justify’ it.
This change will not have any impact on
our Scheme, as the Scheme’s own Normal
Retirement Age is quite separate from the
default retirement age and allows various
pension calculations to be done and
explained. If you are an active member and
you remain employed after the Scheme’s
Normal Retirement Age, you can choose to
keep contributing to the Scheme to earn
more benefit.
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State Pension age rising
You may already know that the State
Pension age for women is gradually
increasing to age 65, as this change has
already begun to take effect. However,
many people are not aware that the
change has now been accelerated
between April 2016 and November 2018,
which will further affect State Pension age
for a number of women.
Additionally, the increase in State Pension
age for both men and women (to 66 years)
will now take place between December 2018
and October 2020. The Government is
currently considering a timetable which could
increase State Pension age to 67 by 2034
and to 68 by 2044.
A State Pension age calculator is
available online on the Directgov website
at www.direct.gov.uk/en/Pensionsand
retirementplanning/StatePension/
DG_4017919. This will be updated as the
changes are finalised in law.

Changes to
pension tax allowances
From April 2011, the Annual Allowance on
pension savings has dropped from £255,000
to £50,000. The Annual Allowance is the
maximum amount of pension savings on
which an individual can receive tax relief in
any one year.
This applies to benefit accrual for the DB
section of the Scheme, any contributions
paid under the DC section of the Scheme
and any additional voluntary contributions.
The 12 month period against which an
individual’s Annual Allowance is measured is
called the Pension Input Period or PIP.
For our Scheme, the end date of the PIP is
31 March each year and has been so
since 2007.
The Lifetime Allowance (the tax-free limit on
the total value of your pension savings from
all sources) is set to drop in April 2012,
from its current £1.8 million rate to a
reduced level of £1.5 million.
Very few people will be affected by these
changes, but if you think that the new levels
may impact on you, you are recommended
to take independent financial advice. Visit
www.unbiased.co.uk to find an independent
financial adviser in your local area.
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Pensions Green Paper
In April, the Government published a Green
Paper outlining proposals to implement a
flat rate State pension to replace the
current two-tier system. Two different
approaches are being considered.
The first proposal is to accelerate the pace
of existing reforms to the State second
pension (S2P), so that it becomes a flat
rate pension by 2020 rather than by the
2030s. At the end of the transition, subject
to an individual having 30 qualifying years,
this would provide a combined State
pension of around £140 per week in
today’s terms, made up of the basic State
pension and S2P.
The second proposal is more radical and
would combine the basic State pension
and S2P into one single tier State pension.
Subject to an individual having 30 qualifying
years, this would again provide a pension
of around £140 per week, with the level set
above the basic level of support provided
by the Pension Credit.
Consultation on the Government’s proposals
closed on 24 June 2011 and a White Paper
will be issued later this year if the Government
decides to proceed with any reforms.

New flexible
retirement options
On 6 April 2011, the Government
introduced new flexible retirement options
for individuals retiring from that date. These
include new flexible drawdown rules once
an individual’s guaranteed income meets
the Minimum Income Requirement (MIR) of
£20,000 a year. The MIR includes
pensions, annuities and state pensions.
If an individual has a pension income of at
least the MIR, then the excess funds can
be drawn immediately, or as required by
the individual, as cash. A proportion will be
tax free and the rest will be subject to
income tax.
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The Trustee and the Company are
considering the impact of these changes
and further information will be issued in due
course. In the meantime, any members
who are approaching retirement and who
may be interested in the new flexible
retirement options, should seek
independent financial advice and also
contact the BASF Pension Department
(details on page 12).

Useful contacts
You may find the following websites and contact details useful…
www.direct.gov.uk
This website brings together a wide range
of public service information and services
online. You can access the Pension Tracing
Service on this site, which enables members
who lose contact with pension schemes of
previous employers to trace their benefits.
www.thepensionsregulator.gov.uk
The Pensions Regulator is the regulatory
body set up to encourage high standards
and good practice in the running of
work-based pension schemes in the UK.
It provides a wide range of guidance and
training modules to help Trustees better
manage their pension schemes.
Phone number: 0870 606 3636.
www.pensionsadvisoryservice.org.uk
The Pensions Advisory Service (TPAS) is
an independent voluntary organisation
set up to give free help and advice on
occupational or personal pension issues. The
website also has a range of tools and guides.
Phone number: 0845 601 2923.
www.pensions-ombudsman.org.uk
If TPAS is unable to help, you can contact
the Pensions Ombudsman, who can
investigate and determine any complaint
or dispute of fact or law.
Phone number: 020 7834 9144.
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www.unbiased.co.uk
This is the official site for Independent
Financial Advisers (IFAs), where you can
find details of IFAs in your area.
Alternatively you can call 020 7833 3131.
www.fsa.gov.uk
The site of the Financial Services Authority,
whose functions include the regulation of
investment companies.
Phone number: 0845 606 1234.
www.moneyadviceservice.org.uk
The Money Advice Service was launched
in April 2011 to give free, unbiased money
advice. Its objective is to enhance the
understanding and knowledge of members
of the public about financial matters. The site
includes a section on pensions and has
some useful publications and links to access.
Phone number: 0300 500 5000.
http://ukpensions.basf.co.uk
The BASF UK pensions website - your first
port of call for any information about
the Scheme.
If you want information
about your benefits please
see the next page.

Your contacts
If you have any questions about
your pension, please contact the
Scheme administrators:
HS Admin
Post: HS Administrative Services,
3300 Daresbury Park, Daresbury,
Warrington WA4 4HS
Tel: 01928 707930 / 707932
Email: basf.team@hsadmin.co.uk
BASF Pension Department
Post: BASF plc, PO Box 4,
Earl Road, Cheadle Hulme,
Cheshire SK8 6QG
Email: alison.wilkins@basf.com
Web: http://ukpensions.basf.co.uk
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