Investments made easy
There are several additional contribution options available:
Matched Contributions (M Plan and Hybrid M Plan only)
Elect 1% or 2% Matched Contributions and the Company will match the contribution you elect. Matched Contributions are part of the You* flexible reward scheme and can only be elected during the annual You* elections. Find out more...
Additional Smart* Contributions (ASCs)
Elect ASCs and receive a 6% uplift from the Company. Matched Contributions are part of the You* flexible reward scheme and can only be elected during the annual You* elections. Find out more...
Additional Voluntary Contributions (AVCs)
Start or stop paying AVCs whenever you wish. You can pay a percentage of your salary, a fixed monthly amount or a one-off payment. Find out more...
If you are invested in Lifecycle or Lifecycle Plus, you can change your TRA by completing the Lifecycle/Lifecycle Plus form.
If you are invested in Lifestyle, you can change your TRA by completing the Lifestyle form.
Click on "Forms" above to access and complete the appropriate form to switch.
All switch requests submitted to Pensions Services will be traded within two working days (Monday to Friday, excliuding Bank Holidays).
Active employees can change their investment election for future contributions. Click on "Forms" above to access and complete the appropriate form to switch.
If you change the investment of any future contributions to a Freestyle fund, this won't change the investment of your existing Retirement Account.
What are the cut off dates for making a new investment election?
To apply your new investment election to your new contributions, you must submit your request before the cut off date. The cut off dates are shown below:
|Month||Cut off date for investment elections for future contributions|
|6 November||22 October 2013|
|6 December||21 November 2013|
|6 January||12 December 2013|
|6 February||22 January 2014|
|6 March||19 February 2014|
|6 April||21 March 2014|
|6 May||16 April 2014|
|6 June||21 May 2014|
|6 July||20 June 2014|
|6 August||22 July 2014|
|6 September||21 August 2014|
|6 October||19 September 2014|
To disinvest your existing funds with Friends Life and/or Equitable Life With-Profits funds to any of the Legal & General funds, complete the disinvestment form below.
Use the form on the Independent Financial Advisers page to find a local adviser.
Q. I'm an active employee and would like to change my investment election for future contributions, when is the cut off date for new investment elections?
A. To apply your new investment election to your new contributions, you must submit your request before the cut off date. The cut off dates are shown below:
|Month||Cut off date for investment elections for future contributions|
|April||27 March 2013|
|May||28 April 2013|
|June||29 May 2013|
|July||28 June 2013|
|August||29 July 2013|
|September||29 August 2013|
Q. What are the switching costs?
A. For the switch of funds on an individual basis, L&G operate a pricing policy known as "daily swing pricing" so the actual trading costs incurred on any one day for any specific fund depends on the total level of net cash inflows or outflows in that fund across all clients. If the inflows and outflows are equal the trade price is struck at "mid" which means no spread is incurred. If the cash flow is net positive the price will be struck at offer (the higher price) and if it is net negative the price will be struck at bid (the lower price). Everybody (all L&G clients in those funds) then buys or sells at that set price. As there is no way of being able to predetermine these cash flows one can't predict in advance the cost of any trade. No fees are taken by L&G.
Q. When will the funds that are 'Targeted for Closure' be closed?
A. During the recent review by the Trustee of the investment options, some of the existing funds were identified as probable targets for closure in future. The reason for this was that the new range of investment options offers the member the ability to replicate the same or similar type of investments without the need for these funds to remain open. There is no specific date for this in mind, and members will be advised as soon as possible once any specific closure date is identified. When this happens members will be given sufficient advance notice to elect to transfer their holdings to another fund(s) of their choosing. If the member makes no election then the full value of their units in these funds will be transferred from the existing funds into an equivalent new fund or combination of funds selected by the Trustee.
Q. What are some of the typical standard investment management activities undertaken by Legal & General (L&G)?
A. L&G as well as other investment managers partake in activities such as corporate governance, securities lending and the use of derivatives. L&G's policies in these matters are described below:
Corporate Governance and active ownership
Corporate governance refers to the rules and procedures which govern the management and control of a company. L&G has taken steps to improve the corporate governance of the companies whose shares it holds through the funds offered in the IBM UK Pension Plan, by engaging with company management and exercising the voting rights attached to its shareholding, a procedure called active ownership.
The rationale for pursuing the improvement of corporate governance through pension funds is based on strong evidence about the link between effective corporate governance and strong company performance. Overall, active ownership contributes to the improvement of the investment system by influencing company management to act in the long term interest of pension savers.
As part of managing IBM’s pension funds, L&G takes the following actions to promote good corporate governance:
- votes at all company meetings in the UK where the company has a premium listing. LGIM will vote at the meetings of smaller companies, such as fledgling or AIM stocks, on an ad hoc basis when it holds a significant shareholding and the meeting is critical to the future of the business, or where LGIM has a significant concern with any aspect of its governance.
- formulates specific views on the role, structure and operation of company boards, external audits, remuneration and shareholder rights
- advocates simplicity and transparency when considering disclosure on executive remuneration
- publicly discloses its UK voting decisions for its internal clients which can be viewed on the Corporate Governance section of the LGIM website - www.lgim.com/corporategovernance
As part of managing IBM’s pension funds, L&G is runs a securities lending programme to enhance the income gained by some of the funds. Securities lending is the practice of temporarily passing the ownership an asset from an asset owner (fund) to an asset borrower (other institutional investor) in return for a fee. The borrower has to give the lender some form of collateral (an asset which passes to the lender if the borrower defaults) until it returns the asset it has borrowed. The rationale for this practice is that it improves market liquidity and provides the opportunity for pension funds to raise income.
The risks involved with securities lending are counterparty risk (default of the borrower), corporate governance risk (loss of voting right during the loan period) and inappropriately rewarded risk (the lender takes excessive risk to generate small returns).
L&G applies the following policies in the funds which run a securities lending programme:
- all revenue from securities lending (net of administrative charges) exclusively benefit the fund which lends the assets
- operates this practice only in countries with well-established securities lending markets
- only accepts high quality collateral and demands 105% collateralisation on their loans
Some L&G funds in the Pension Plan make limited use of derivatives in order to run their portfolios efficiently and minimise transaction costs. Derivatives are financial contracts which derive their value from assets such as stocks and bonds or indices such as the FTSE 100 or interest rates. A key characteristic of most derivatives is leverage, which refers to the increased economic exposure that an investor gets to an asset through a derivative compared to investing directly in the underlying asset.
L&G use listed futures contracts on a small scale relative to the size of their portfolios to enable transaction costs to be reduced and for cash and dividends to be capitalised on a temporary basis in order to reduce the need to buy and sell the corresponding amount of underlying shares. In a small number of funds, primarily European equity index funds, L&G also use on a temporary basis listed single stock futures for dividend enhancement. Listed futures also have the advantage that they enable pension funds to access a ready source of market liquidity, which is at times greater than that of the physical securities market.
Your Retirement Account
You can find out the value of your Retirement Account and how it is invested by looking at:
You can find out how the investment funds are performing by using the Fund Sorter