The Scottish Union And National Insurance Company
Pension Fund and Life Insurance Scheme
A. & S. (Footwear) Ltd.
The A & S Pension Fund and Life Insurance Scheme
This Booklet has been prepared to explain to you the details of our Joint Contributory Pension Fund and Life Insurance Scheme.
Our share of the cost is considerable and although we shall not cease our contributions without very good cause, you will understand their maintenance depends upon our continued prosperity. The Fund provides security for the years when leisure can justly be claimed and we are sure it will draw from the Staff a strengthening of that loyalty and service which have always ensured our success.
Membership is open to all who satisfy the conditions of membership set out on the separate page enclosed with this Booklet. While reading the booklet you v/ill find it helpful to have this separate page beside you for ready reference.
The Pension Fund
Benefits On Retirement
The main benefit, is a pension calculated in accordance with the scale shown on the separate page enclosed with this Booklet.
Pensions for future service (i.e. service after joining the Fund) are calculated by multiplying the number of years' service in each grade by the unit of pension for that grade.
An example of the operation of the scale is given on the aforementioned separate page.
The pension will be payable by monthly instalments, of which the first will fall due on the first day of the month following that in which you attain the pension age and the last on the monthly due date preceding death (unless within the initial five years' period for which payments are guaranteed).
By mutual agreement, you may retire during the ten years preceding the normal pension age or you may retire at any time if you satisfy the Trustees that you suffer exceptionally from serious ill health, In either event you may commence immediately to draw a reduced pension.
If you remain in our service after the normal pension age, all contributions will cease and the pension will start only when you retire, but will be increased by reason of the deferment.
You will have the option at retirement of taking instead of the normal pension,
(a) a reduced pension and
(b) a pension not greater than your reduced pension, payable from the date of your death to a dependant nominated by you at the time you retire.
The amount by which the normal pension will be reduced depends upon the age and sex of your dependant.
The benefits under the Fund must normally be taken as a pension. If, however, you retire for reasons of serious ill health or your pension at normal pension age does not exceed £39 per annum you may with the consent of the Trustees take a lump sum payment in lieu.
Benefits On Death
If you die in our service before the normal pension age, there will be payable a return of all your own contributions (see also section dealing with separate Life Insurance Scheme).
If you select the normal pension and die within the five years immediately after retirement there will be payable the cash value at the date of death of the payments remaining to be made had the pension been payable for five years certain or, at the Trustees' discretion, the pension payments will be continued for the remainder of that period. If you die after the five years' period, payments will cease at your death.
Any death benefit resulting from the Fund will be payable at the discretion of the Trustees either to:
a. your dependant or dependants, or
b. your executors or administrators.
Benefits On Leaving
You are always entitled to the benefit of your own contributions and, unless you leave of your own free will or are dismissed for or misconduct, you will also be entitled to the benefit of our contributions.
If you are entitled to the benefit of our contributions the benefits secured by both your own and our contributions must be taken as a pension from normal pension age.
If you are not entitled to, or elect to forgo the benefit of our contributions, you may have your own contributions returned. In this case, the Trustees would have the power to deduct an amount equal to the tax for which they are liable because of the refund.
Full details of the options available will be explained to you when you leave.
Your contributions are shown opposite the appropriate grade in column (4) of the scale. We shall pay the balance of the cost of the pension benefit,
Income Tax Details
Application has been made to the Inland Revenue for approval of the Fund under Section 379 of the 1952 Income Tax Act, so that our contributions are not regarded as income in assessing your income tax and you may obtain relief of tax on your own contributions as an expense.
If you are absent from work because of illness for a period exceeding one month, you may, if we consent, suspend payment of your contributions, when a corresponding reduction will be made in the amount of pension.
Discontinuance Of Contributions
In the case of exceptional financial hardship, if we consent, you may discontinue your contributions, in which case our contributions will also cease and you will receive a reduced pension at retirement.
The Life Insurance Scheme
The Scheme is open to all members of the Pension Fund and is governed by Rules.
Benefits On Death In Service
The separate page enclosed with Booklet indicates the benefits available.
Any death benefit resulting from the Scheme will be payable at our discretion either to:
(a) your dependant or dependants, or
(b) your executors or administrators.
We will pay the whole of the cost of the life insurance.
War risks are covered by the life insurance benefit.
Evidence Of Health
If your life insurance benefits are within certain limits, evidence of health will not be required either at the time you join or when subsequent increases in benefits are granted, provided you are at work on full time on the day we complete the insurance proposal form for your entry into the Scheme.
Leaving The Service Of The Company
On leaving our service the life insurance will cease, but you may, within 30 days, replace the insurance by a whole Life or Endowment Insurance for the same amount at the Insurance Company's published rate of premiums at that time appropriate to your age, provided you were accepted at normal terms under the scheme.
Application For Membership
Application for membership must be made on the special form provided and a Certificate of Birth must be provided. A married woman must, in addition, produce her Marriage Certificate.
Effect will be given to increases in benefits due to changes in salary grades on anniversaries of the inception of the Fund and the Scheme.
Termination Or Amendment
Whilst we expect to continue the Pension Fund and Life Insurance Scheme indefinitely, we reserve the right to reduce or cease contributions to the Fund, or terminate or amend the Scheme at any time without notice. This will not affect in any way:
(a) the pensions already being paid;
(b) the pension benefits already secured.
This booklet is issued for the convenience of members on the understanding that it shall not create any legal obligation or have binding effect. The Pension Fund is governed by the Trust Deed and Rules and the Life Insurance Scheme is governed by Rules, and in the event of any conflict between the provisions of the Trust Deed and Rules and anything herein contained, the said provisions shall prevail. A copy of the Trust Deed and Rules may be inspected on application.