ABOUT THE PLAN

The Progress Rail Group Personal Pension Plan (GPP) is a defined contribution plan provided by Aviva. You also receive life assurance cover as part of the plan, although this is not provided through Aviva. All new starters employed by Progress Rail and Electro-Motive Diesel are automatically enrolled into the GPP.

A tax-free way of saving for retirement

You don’t pay any income tax on your pension contributions (up to certain limits) and, if you pay by salary sacrifice you will also pay less National Insurance.

A generous employer contribution

All new employees are automatically enrolled into the Company’s GPP pension scheme, with their pension contributions being matched by additional contributions from the Company as set out in your contract of employment. Always bear in mind though, that you can increase the level of your contributions, with the tax savings that come with that, by simply contacting your HR department.

Money for when you retire

The GPP gives you the flexibility of choice when you reach retirement. You can take up to 25% of your GPP account as tax-free cash and use the remainder to provide an income or take it as a lump sum/s, subject to tax.

The size of your benefit when you come to retire depends on how much has been paid in, how long you invested for and how the market has performed in that time.

If you decide to buy an annuity (i.e. a guaranteed retirement income), annuity rates at the time you retire will affect the size of your annuity payments you receive.

When you are ready to retire, Progress Rail has contracted a retirement broker called Hargreaves Lansdown to help you get the best from your pension (for members with more than two years’ service) although you are free to take financial advice from any party. Your first session with Hargreaves Lansdown will be free of charge. These arrangements will be made through your HR Department.

Financial protection in the event of death or illness

A lump sum of 3 x your basic salary will be paid (usually tax free), at the trustees’ discretion to the person you have chosen as your beneficiary if you die while you are employed by the Company.

The money that has built up in your GPP account will also be paid to your beneficiary.