Presentation to

1. Presentation to Wednesday 12th June, 2013 – 10.30am Unite House128 Theobald's RoadHolborn London WC1X 8TN

2. PensionsThe next 5 years In the UK, there are 16 million employees who will be exposed to changes in pensions legislation during the next 5 years. There are over 8 million of these employees that will automatically be enrolled into a qualifying workplace pension scheme over the next four to five years. In 2014 alone, 1.1 million employers will face additional legislative responsibilities and the requirement to choose an Auto Enrolment Workplace Pension Scheme. Are employers ready for Auto Enrolment?

3. PensionsThe next 5 years When do you need to commence pension contributions? Are you aware of the legislative responsibilities? BlueSky’s Auto Enrolment and Data Package Do you have a Qualifying AE Pension Scheme to join? BlueSky Pension Scheme

4. Staging Dates When do you need to commence pension contributions? From October 2012, any employer with employees being paid by PAYE has been required, by Government legislation, to nominate a ‘qualifying workplace pension scheme’ and ‘auto-enrol’ certain categories of its employees. The table below details the date at which an employer needs to commence pension contributions but may be subject to further change by the DWP. Employer size (by PAYE scheme size) or other description From (inc.) To (inc.) 120,000 to 800 employees 1st October 2012 1st October 2013 799 to 250 1st November 2013 1st February 2014 249 to 50 1st April 2014 1st April 2015 Test tranche for less than 30 1st June 2015 30th June 2015 49 to 30 1st August 2015 1st October 2015 Less than 30 1st January 2016 1st April 2017 Employers without PAYE schemes 1st April 2017 New employers 1st May 2017

5. Legislation Are you aware of the legislative responsibilities? Before staging date • 6 months before - Posters informing employees that ‘auto-enrolment’ is approaching • Register a point of contact with the Pensions Regulator • 4 months before - Register chosen pension scheme with the Pensions Regulator • Provide data covering employer, scheme used, postponement and number of workers • Workers already in a scheme must be provided with information about the scheme • All data must be kept for at least 6 years

6. Legislation Are you aware of the legislative responsibilities? From Staging date Eligible Jobholders • aged 22 – SPA must be automatically enrolled • must be written to with information about the chosen pension scheme • must have the option of opting out* Non Eligible Jobholders and Entitled Workers • must be provided with information about the chosen pension scheme • must be provided with information on how to ‘opt in’ or join a scheme Contribute • Staging Date to October 2017 - 2% of total pay (employer must pay 1%) • October 2017 to September 2018 - 5% of total pay (employer must pay 2%) • October 2018 onwards - 7% of total pay (employer must pay 3%)** Monitor • Each pay period, employees need to be assessed for enrolment *‘Opt out’ employees will need to be re-enrolled every 3 years * *These examples are based on total pay. There are alternative definitions of pensionable pay which may result in higher rates of contributions to be paid.

7. AE Legislation Solution BlueSky’s Auto Enrolment and Data Package • BlueSky’s Auto Enrolment Data and Communication Package • Fully compliant with all legislation • Forms part of BlueSky’s ‘one system for all’ administration system • Online creation and submission tool • Member ‘opt in’ or ‘opt out’ facility • Real Time Information (RTI) reporting • Pre and post Payroll reporting • Full Communication package covering all legislative requirements • No set up fee • Annual fee with 10% employee number fluctuation included • * See appendix for example process

8. Choosing a Pension Scheme Do you have a Qualifying AE Pension Scheme to join? • An Auto Enrolment Qualifying Workplace Pension Scheme • Must not have any barriers to entry • Must not require members to sign any paperwork to be ‘automatically enrolled’ • Must have an online process for ‘opting-in’ and ‘opting-out’ • and • Must state that contributions to the scheme will reach minimum requirements by 2018 • or • Be accompanied by a statement from the employer

9. How to choose BlueSky Pension Scheme • The BlueSky Pension Scheme is a Multiple Employer SuperTrust • The ECA and Unite as its ‘Preferred Supplier’ • to the Electrical Contracting Industry • BlueSky is non profit – run for the members • No cost to the Employer, paid by members – 0.3% for 2013 • Operational since 1988 • Over 250 employers already participating • Funds under management in excess of £260m • Administered in the UK • Trustee Board and appointed professional advisors • Dynamically Managed Target Date Funds or 11 further ‘Self Select’ funds • Web based access for members, employers and advisors (MAP, SUN and APS) Who monitors the BlueSky Pension Scheme? What are the members’ investment options? Who has recommended BlueSky? How accessible is BlueSky? What are the costs? Are fees paid to any party? Is BlueSky proven?

10. Investment Options BlueSky Pension Scheme 12 member selected options Default Target Date Funds – offering dynamic asset allocation aiming to provide a risk reduced age appropriate diversified fund Plus 11 ‘white labelled’ funds – with overview and monitoring Global Equity Passive - aims to passively track performance of global equities. Global Equity Active - aims to outperform global equities on a risk adjusted basis over three to five years UK Gilts - aims to passively track performance of UK gilts UK Property - aims to outperform UK property on a risk adjusted basis over three to five years Index Linked Gilts - aims to passively track performance of UK index linked gilts Cash - aims to perform in line with wholesale money market short-term interest rates UK Corporate Bonds - aims to outperform UK corporate bonds on a risk adjusted basis over three to five years Emerging Markets - aims to outperform emerging market equities on a risk adjusted basis over three to five years UK Equity Active - aims to outperform UK equities on a risk adjusted basis over three to five years UK Small Cap - aims to outperform UK small capitalisation equities on a risk adjusted basis over three to five years Multi Asset Sharia – investing in Sharia compliant diversified funds

11. Target Date Funds BlueSky Pension Scheme • Key features: • Age appropriate diversified growth funds • Mix various asset classes with age appropriate allocation • Are monitored daily by strategist and consultant • Aim - To reduce risk providing greater member outcome One Fund for Life Allows Members to Focus on Saving

12. Benefits BlueSky Pension Scheme • No short service refunds of contributions Encouraging pension savings • Transfers in Consolidation, taking advantage of BlueSky’s annuity sourcing service on retirement • Transfers out No restrictions or charges - the value of the member’s account is the amount transferred • Pre retirement planning At 5 years, 2 years, 6 months and 3 months before retirement • Retirement processing Annuity sourcing at no extra cost and drawdown options • Death benefits Paid at the discretion of the Trustee as either a return of fund or, if selected, an annuity

13. Costs BlueSky Pension Scheme • There is no cost to the Employer of operating BlueSky • With other providers, many of the functions described above will need to be undertaken by the employer • BlueSky provides full support and expertise to the employer enabling them to minimise the time dedicated to pension operations • Annual Management Charge (AMC) 2013 : 0.3% • jdgfbJOBDGJ;sbdg;jbSDGJB;bgd;JB 2014 : 0.3% • Investment costs as low as 0.2% • Default option 2013 : 0.33% • Default option 2014 : 0.26% • Annuity set up at no extra cost

14. BlueSky The complete pension solution For members For employers For management

15. Appendix BlueSky’s Auto Enrolment and Data Package

16. Appendix BlueSky’s Auto Enrolment and Data Package

17. Appendix BlueSky’s Auto Enrolment and Data Package

18. Appendix BlueSky’s Auto Enrolment and Data Package

19. Appendix BlueSky’s Auto Enrolment and Data Package

20. Accreditations and referees Management Teams Support Team Administration Teams JIB Trustee Company Ltd BlueSky Pensions Ltd Contracted Partners Executive Structure BlueSky Pension Scheme BlueSky Pension Scheme

21. Contribution Interface Calculations Annuity Portal Payroll Scanning system HSBC gateway Member portal Auto enrolment package Administration Setup Intellipen BlueSky Database BlueSky Pension Scheme

22. How to choose BlueSky Pension Scheme • The BlueSky Pension Scheme is a Multiple Employer SuperTrust • Who has recommended BlueSky? • Are fees paid to any party? • What are the costs? • Is BlueSky proven? • Who monitors the BlueSky Pension Scheme? • What are the members’ investment options? • How accessible is BlueSky?