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Find out more

If you’re still not sure whether or not to take up the ETV option, below you can read a few frequently asked questions. If you have questions about how an ETV could affect your personal finances, you can contact a financial adviser using the contact details below:

Tel: 01 618 1272
E-mail: ie.grandmetetv@willistowerswatson.com

Opening hours are 9 to 5 with a voicemail outside of those hours.

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About the ETV Offer

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You have two options in relation to your deferred pension in the Fund:

  1. You can choose to keep your pension in the Fund, where it is due to be paid to you when you retire, subject to the provisions governing the Fund; or
  2. Alternatively, you can choose to transfer the cash value of your pension benefits out of the Fund to another pension arrangement, subject to the consent of the Fund’s Trustee, where necessary.

For a limited period, Diageo is enhancing the transfer value that would otherwise be payable to most members from the Fund. This enhancement plus your Fund Transfer Value is the ETV offer.

The ETV offer being made to you is outlined in your offer letter.

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This is the pension that is due to be paid to you from the Fund if you do not transfer out your benefits, subject to the provisions governing the Fund. This pension will be paid from your Normal Pension Date and it will be based on your pensionable service and final pensionable salary in the Fund at the date you left employment or the date you opted out of the Fund if earlier.

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In certain circumstances (for example on satisfying certain ill-health criteria) it may be possible to take your pension early after age 50, in which case the amount of your pension may be reduced based on the prevailing policy and factors applying at that time.

However, at the current time the option to take early retirement from the Fund is not available to deferred members. In that case, it may be necessary to wait until your Normal Pension Date in order to draw your benefits.

Alternatively, you could decide to transfer your benefit to a more flexible pension arrangement, where access to benefits may be facilitated from age 50 onwards.

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Your pension from the Fund may be increased in retirement. Where indicated in your offer letter, the portion accrued up to 31 December 2013 receives automatic increases in payment in line with the percentage increase in CPI up to a maximum of 5% and a minimum of 3% each year. The portion accrued from 1 January 2014 may be subject to discretionary increases in payment.

Diageo has a stated pension increase policy in respect of the discretionary element of your pension which is reviewed from time to time.

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Your deferred pension (as outlined in your offer letter) will be adjusted each year, from your date of leaving service to the end of the year prior to the date payment commences. The annual adjustment will be the lower of the annual increase in CPI or 5% (subject to a minimum of the statutory increase applied to deferred pensions).

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Under current tax rules, yes, you may have an entitlement to take a tax efficient lump sum from the Fund when you retire. Your maximum tax efficient lump sum will be based on your service and salary with Diageo and can be provided by foregoing some of your Fund pension or through your Additional Voluntary Contributions (AVCs) (if applicable). The lump sum can also be provided from a combination of these sources.

There is a lifetime limit that applies to an individual’s lump sums taken from all pension arrangements.

If you have already waived your right to a lump sum from the Fund, you may not be able to take a lump sum from your receiving arrangement if you accept the ETV offer.

You should discuss this in more detail at your meeting with WTW Ltd.

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This is the transfer value that is available now from the Fund in respect of your deferred pension. The assumptions used to calculate the Fund Transfer Value are determined by the Trustee and are currently based on statutory minimum assumptions set by the relevant Minister.

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No. The ETV must be paid into either a Personal Retirement Bond, to a new employer’s pension scheme, or if allowable, to a Personal Retirement Savings Account.

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The ETV offer is valid until 5pm on 15 June 2021.

If you are interested in the ETV offer, you will need to register your interest by returning the Expression of Interest form as soon as possible, but not later than 14 May 2021. A meeting will then be scheduled with an independent financial advisor from WTW Ltd.

If you decide to accept the offer, you will need to complete and return the appropriate forms at the latest, by 5pm on 15 June 2021.

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Diageo currently has no plans to repeat this offer for you in the future.

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In the current low interest rate environment, there is scope for Diageo to offer an increased transfer value in excess of the Fund’s current transfer value basis which Diageo believe would be at a level that is attractive to members while also assisting in reducing the Fund’s liabilities and hence the Company’s risk exposure.

Diageo believe it may suit some of the members of the Fund to take an ETV as this will give them greater flexibility over how they can receive their benefits when they retire.

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Making a decision

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In the first instance you should register your interest by completing the “Expression of Interest” form which is included in your ETV offer letter or by the form here. Your signed form should be returned to Global.Pensions@diageo.com by 14 May 2021, or sooner if you prefer.

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After your financial advice meeting, WTW Ltd will send you a recommendation. You will need to complete the forms provided by WTW Ltd and provide any additional information you are required to submit by 5pm on 15 June 2021.

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The offer provides for a 14 day ‘cooling off’ period from the date you accept the offer, during which time you can change your mind. You may not change your mind after this period has elapsed.

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If you do not want to accept the ETV offer, you are not required to take any action. If you take no action then your pension will remain in the Fund, where it is due to be paid to you when you retire (subject to the provisions governing the Fund).

It should be noted that attending the individual advice session does not bind you to accept the offer.

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After the deadline, you will be able to take a transfer payment (subject to the governing provisions of the Fund), however, the offer of an enhancement to the Fund Transfer Value will no longer exist.

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Assistance being provided to members

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This guide and the personalised offer letter you received provide detailed information in relation to the ETV offer.

If you have a general question in relation to the ETV offer throughout the offer period, you can contact Global.Pensions@diageo.com

Diageo have also collated information on the ETV offer on a dedicated microsite which can be found at https://grandmetetv.pensionrethink.ie. Diageo has engaged WTW Ltd to provide you with independent financial advice in relation to the ETV offer, at no cost to you. It is essential that you fully understand the potential consequences of transferring out of the Fund prior to accepting the offer. For this reason, members will be required to take independent financial advice from WTW Ltd before they can avail of the ETV offer.

You may also take additional advice from your own financial advisor if you wish, but this will be at your own expense.

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Yes. As it will be difficult to arrange a meeting in person, we will arrange for the financial advice meeting to be conducted by Zoom, MS Teams or by phone.

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Yes, members may bring their spouse, civil partner, or dependant to their individual meeting.

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In addition to meeting with WTW Ltd, which is compulsory if you wish to accept the ETV offer, you may also take additional advice from your own financial advisor if you wish, but this will be at your own expense. If you do use your own financial advisor, you should check whether your financial advisor is a pension specialist and is fully qualified to deliver the advice you require.

If you choose to also seek advice from your own financial advisor, they may receive commission from the new pension provider after the transfer, but this is something you will need to address with your own financial advisor. We recommend that the advice you receive is on a fee, rather than commission, basis.

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No. It is entirely your decision whether you decide to accept the ETV offer. You may still decide to keep your pension in the Fund even if WTW Ltd recommends that you accept the ETV offer.

Similarly, you may decide to accept the ETV offer if WTW Ltd recommend that you reject the offer. If this is the case, you will be required to sign an additional waiver which will be provided to you following your meeting.

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Vehicles into which ETV can be paid

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You may transfer the amount to your new employer’s pension scheme (if permitted). Alternatively, we will facilitate members transferring to a Personal Retirement Bond (PRB), which can be established on preferential charging terms, or if permitted, to a Personal Retirement Savings Account (PRSA).

PRBs are individual policies written by insurance companies and some other providers (e.g. stockbroking firms). The option is not available if you are living outside the Republic of Ireland.

Please note that you can only transfer your benefits to a PRSA if certain conditions apply (in particular you must have been a member of the Fund for less than 15 years).

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Further information relating to the Personal Retirement Bond option will be provided during your meeting with WTW Ltd. This will cover important topics such as the investment choices available to you under the Personal Retirement Bond, the charging terms (including preferential terms that have been negotiated with the preferred provider) and the options for drawing your benefits.

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Yes, there are PRBs available in the market, known as “self-directed” PRBs, which provide greater investment flexibility, including the option to invest in individual properties. Further information and individual financial advice on the options available will be provided as part of your session with WTW Ltd.

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This would depend on the rules of your new employer’s pension scheme. Not all pension schemes will accept a transfer in. If you are interested in this option, you should look through any documents (e.g. the scheme booklet and your latest annual benefit statement) that you have in respect of your new employer’s pension scheme and discuss this with your appointed advisor during your meeting with WTW Ltd.

After bringing your ETV into your new scheme, the options available will depend on the rules of your new employer’s scheme and how/when you intend on drawing your benefits.

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It depends on where you wish to transfer to and where you are resident. Irish law restricts transfers only to pension plans that have similar features to Irish pension plans. If you wish to transfer overseas, we will require details of the pension plan that you wish to transfer to, and further documentation may need to be completed.

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Other pension benefits

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If you decide to accept the ETV offer and transfer your benefits out of the Fund, the value of your AVCs will be transferred at the same time to your chosen pension arrangement. No enhancement will be applied to the AVC element of the transfer value payment.

Please note that the AVC amount is not guaranteed, as it will depend on market movements, and the ultimate value will not be known until the date of transfer.

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Any previously transferred-in benefits you have in the Fund will be transferred out to your chosen pension arrangement with your Fund benefits. If the benefits you received in respect of the transfer value into the Fund, are in the form of an additional DB benefit, the portion of the transfer value relating to those benefits is also enhanced. If they are held in DC form, they will not be enhanced and their value is not guaranteed.

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Other questions

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The Fund currently meets the Funding Standard which is a statutory funding measure. A full actuarial review of the Fund was completed as at 30 September 2018 and the Company are currently paying the contributions recommended following that review.

Further information on the position of the Fund can also be obtained from the most recent Trustee Annual Report. Members can request a copy of this report at any time.

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The Standard Fund Threshold (or ‘lifetime limit’) is currently €2m. If the value of your total tax-approved pension benefits (those from Diageo and any other retirement benefits that you have) exceed this limit, then you may incur an additional tax liability when you come to process your retirement benefits. If you are affected by this legislation or might be in the future, this will be covered in your meeting with WTW Ltd.

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Please refer to the privacy notice appended to your initial offer letter for further information.

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The Trustee of the Fund is R & A Bailey Pension Trustee Designated Activity Company.

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The ETV offer is an offer from Diageo. If you elect to take an ETV, a portion of the Fund Transfer Payment will be paid by the Fund administrator on behalf of the Trustee. Diageo will pay whatever contribution is required to top up the transfer payment from the Fund to the total ETV amount.

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Important Notes

Every effort has been made to ensure the above FAQs are as accurate as possible. However, if there are any discrepancies or conflicts between the information contained above and the relevant Trust Deed and Rules (which are the legal documents which govern the Scheme) or law then the Trust Deed and Rules and the law will take priority.