RETIREMENT PLAN KEY FEATURES

RETIREMENT PLANNING

Contents Its Aims Your Investment Risks Questions and Answers How is my money invested? Can I take my money out? What are the charges? How does the Retirement Plan work? What about tax? What happens if I die? How do I know if the Retirement Plan is the right investment for me? How can I find out how my investment is doing? What happens if I change my mind? Further information

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This is an important document that you should keep along with the enclosed personal illustration. This document contains the main points about your investment with St. James’s Place. Your illustration shows information about your investment, including what you might get back in the future. Please read this Key Features document with your illustration. The Financial Services Authority is the independent financial services regulator. It requires us, St. James’s Place, to give you this important information to help you to decide whether this investment is right for you.You should read this document carefully so that you understand what you are buying and then keep it safe for future reference.

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Its Aims In investing with St. James’s Place, your principal aim is for your investment to increase in value over the medium to long term. Our Retirement Plan provides a wrapper that enables you to save money for your retirement in a tax efficient way.

Thank you for considering investing with St. James’s Place. This document is a brief guide to your investment. It outlines the tax position, advantages and risks of the underlying product.

Your Investment By placing your investment in a Retirement Plan you are able to invest in a wide range of funds with the flexibility to switch from one to another whenever you wish. It is important to remember that you are making this investment with a view to achieving growth over the medium to long term. You can either invest regularly or by making one-off investments from time to time.

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Questions and Answers Risks

How is my money invested?

The value of your investment can go down as well as up and you may get back less than you invested. It is directly linked to the performance of the funds you select and can therefore increase or decrease.

Your money is invested in a fund or funds of your choice. The investment will normally be made on the working day after we receive your investment, completed Application Form and all other documents we need at our Administration Centre.

There are other reasons that could mean you get back less than you expect:

St. James’s Place offers a range of funds run by independent external managers with differing approaches to investment. As a result, we provide the opportunity to invest in funds with different characteristics, and so diversify the risk. The managers are carefully selected and continually monitored by the St. James’s Place Investment Committee, assisted by independent consultants Stamford Associates.

• The charges we take from your investment may be different from those shown in your illustration if our costs change; for example, our external fund manager charges can change from time to time. • The tax rules could also change unexpectedly and this may reduce how much you get back from your investment. • Inflation will reduce what you can buy in the future with the proceeds of your investment.

The funds have different investment styles and objectives; some aim to produce income, some capital growth over the medium to long term and others a combination of both income and capital growth. The funds are mainly made up of stocks and shares whose prices are quoted on the major stock markets throughout the world. Details of all our funds and fund managers are available from your St. James’s Place Partner.

If you change your mind and decide to cancel your investment within the 30-day cancellation period and there has been a fall in investment values since you invested, the amount you get back will be less than the amount you invested. Different funds will have a variety of risks associated with them. For example, if you invest in a fund which holds assets that can take time to sell (such as property) there may be a delay of up to six months when you ask us to transfer your investment, switch between funds or take benefits. Also, if you invest in a higher risk fund you should anticipate greater fluctuation in the performance of your investment. Further information on fund risks is contained in our Guide to Choosing Your Attitude to Risk, which is available from your St. James’s Place Partner.

The performance of these funds will directly affect the value of your investment.

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Can I take my money out?

What are the charges?

Once you are aged 55 (50 if before 6 April 2010), you can start to take pension benefits from your investment. You may be able to start taking benefits earlier if you are ill and unable to work. You must start to take benefits by the time you are 75.

The whole of your investment is invested in the fund or funds you choose. There are no initial or up front charges. Thereafter the charges are as follows: • There is an annual management charge of 1.25% of the value of your investment. • In addition to the annual management charge, the costs of managing and maintaining the investments are also charged to the investment funds daily and are reflected in the prices of the investment funds. These costs include the fee paid to the fund manager and various other costs (such as audit fees, custody fees, VAT etc). The amount varies from fund to fund, and the expected costs for the funds you have chosen are shown in your illustration. • If you choose to switch your fund choice, the first two switches in any year will be free. If you make more switches, we will deduct a switch charge from the value of your investment each time you do so. • If you decide to transfer your investment within six years of making a contribution to it, we will take an early withdrawal charge. The charge taken is a percentage of the amount transferred and is calculated separately for each contribution, on a sliding scale as shown in the following table:

When you take your benefits, you can receive up to 25% of the fund value as a tax free cash sum. The balance must be used to provide an income. Your St. James’s Place Partner can provide more detail of your options for taking benefits. You can transfer your investment to another pension arrangement at any time. However, if you do this within six years of making an investment there will be a charge as detailed in the following section.

NUMBER OF COMPLETE YEARS SINCE INVESTMENT

EARLY WITHDRAWAL CHARGE PERCENTAGE

Less than 1 year 1 year 2 years 3 years 4 years 5 years 6 years or more

6% 5% 4% 3% 2% 1% No charge

Your illustration shows the current level of these charges and their impact on your investment.

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Due to these generous tax benefits, the Government restricts the annual amount on which you benefit from tax relief on investments you make personally. This is the greater of £3,600 or 100% of your UK relevant earnings,up to a maximum of the ‘Annual Allowance’.

How does the Retirement Plan work? The Plan works by pooling the investments of a large number of people and giving you access to a broad range of professionally managed funds. The Plan also acts as a tax wrapper giving you the tax benefits of investing in a pension arrangement.

The ‘Annual Allowance’ for tax years 2009/2010 to 2010/2011 is as follows:

You can transfer any existing pension benefits into your Plan subject to a minimum value set by St. James’s Place. You should talk to your St. James’s Place Partner about whether or not this could be in your best interests.

TAX YEAR

ANNUAL ALLOWANCE

2009/10 2010/11

£245,000 £255,000

The ‘Annual Allowance’ is reviewed every five years. HM Revenue and Customs has confirmed that the level of the ‘Annual Allowance’ will remain at £255,000 from tax years 2011/12 to 2015/16.

What about tax?

The lump sum payable on death can usually be paid to your beneficiaries free of Inheritance Tax.

Currently, there is no tax on any income and capital gains arising within your investment, although there may be some tax on dividend income that cannot be reclaimed. In addition, the performance of certain funds may be affected by tax on some of the underlying assets.

When you take benefits from your investment, any income will be subject to income tax. Your St. James’s Place Partner can provide more detail on the way your investment is taxed.

You will receive tax relief on any investments you personally make. We will automatically claim basic rate tax relief on your behalf. This means that for every £4,000 you invest, £5,000 will be invested in your fund.

This information is based on our current understanding of tax legislation. However, this may be subject to unforeseen changes and we can give no guarantee that it will remain unchanged in the future.

If you are a higher rate taxpayer you can currently claim additional tax relief via Self Assessment. There are no specific limits on employer contributions, but if your personal and your employer’s contributions exceed the ‘Annual Allowance’, you will be taxed on the excess. You will not be taxed as a benefit in kind on contributions paid by your employer on your behalf.

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What happens if I die?

How do I know if the Retirement Plan is the right investment for me?

If you die before you take benefits, the value of your accumulated fund at death may be paid as a cash sum to your nominated beneficiaries.

Our Retirement Plan is appropriate for individuals who:

If the value of all your pension plans and associated insurances exceeds the ‘Lifetime Allowance’, the excess can be paid as a cash sum after 55% tax is deducted, unless ‘Transitional Protection’ applies, in which case there is no tax charge. If the excess fund is used to provide an income for a dependant, the 55% tax charge will not apply. The ‘Lifetime Allowance’ for tax years 2009/2010 to 2010/2011 is as follows: TAX YEAR

LIFETIME ALLOWANCE

2009/10 2010/11

£1.75 million £1.8 million

• Want to invest for their retirement in a tax efficient manner. • Are looking for an investment with the prospect for growth. • Are prepared to accept that there will be fluctuations in the value of their investment, and that it may fall in value. Stakeholder pension schemes are also available and could meet your needs as well as the Retirement Plan. Your St. James’s Place Partner can give you more information on stakeholder pension schemes.

The ‘Lifetime Allowance’ is revised every five years. HM Revenue and Customs has confirmed that the level of the 'Lifetime Allowance' will remain at £1.8million from tax years 2011/12 to 2015/16.

How can I find out how my investment is doing? The prices of the funds held within your investment are published daily on our website www.sjp.co.uk which will give you an idea of how the funds are performing.

If your Retirement Plan contains Protected Rights and you have a surviving spouse or Registered Civil Partner under HM Revenue and Customs rules, the Protected Rights portion must be used to provide them with an income.

You can get an up to date valuation of your investment at any time by contacting your St. James’s Place Partner, calling us on 0800 633 5000 or by logging on to our website.

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What happens if I change my mind? You can change your mind and cancel your investment before you receive your documentation or up to 30 days after you receive it. If you decide to do so we will give you back the lower of your original investment and its current value. Your money is invested from the day after we receive your application, your investment, and all other documents we need, so if there has been a fall in investment values, you will get back less than you invested. Also, you may not be able to return any benefits you have transferred from a previous pension scheme. After 30 days you can transfer your investment at any time. However the early withdrawal charge will apply. If you wish to cancel your investment you should write to us at St. James’s Place Administration Centre, PO Box 64, Stirling, FK9 4YS.

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Further Information How to contact us

Terms and Conditions

If you have any questions, want further information or want to take money out of your investment, please contact your St. James’s Place Partner, or our Administration Centre, whose address is: St. James’s Place Administration Centre PO Box 64 Stirling FK9 4YS Telephone: 0800 027 1030

This Key Features document and the enclosed illustration give a summary of your investment. They don’t include all the definitions, exclusions, terms and conditions. These are set out in the Plan Conditions. You will receive a copy of the Plan Conditions when your investment starts, but you can ask us for a copy at any time.

Law

St. James’s Place UK plc is a company incorporated under the Companies Act 1985 and is a company limited by shares. Our Registered Office address is St. James’s Place House, Dollar Street, Cirencester, Gloucestershire, GL7 2AQ, United Kingdom; Telephone 01285 640302.

The law and courts of England and Wales will be used to decide any dispute. Nothing in any Key Features or Plan Conditions document creates rights for anyone apart from the client named on the policy schedule and St. James’s Place.

Complaints

Compensation

If you ever need to complain please contact the Client Liaison Department at our Registered Office, whose address is given above. If you are not satisfied with our response you can complain to: The Financial Ombudsman Service, South Quay Plaza II, 183 Marsh Wall, London E14 9SR; Telephone 020 7964 1000.

The Financial Services Compensation Scheme covers your investment. In the unlikely event that we are unable to meet our obligations to you, you may be entitled to compensation under this scheme. You can ask us for detailed information about the compensation arrangements that would apply to your investment under the Financial Services Compensation Scheme.

Complaining to the Ombudsman won’t affect your legal rights.

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Right of refusal If we think that something you ask us to do might not follow the laws, rules or regulations that apply, we can delay taking action or refuse to act. We will not be responsible for any losses, costs, claims or expenses that arise if we delay or refuse to act in these circumstances. Money being transferred into the investment may be held in a separate account whilst we confirm whether or not we can follow your instructions. It will be invested on the date we decide we can follow your instructions. For money being transferred out of the Plan, we may withdraw the money in line with your instruction and hold it in a separate account whilst we confirm whether or not we can make payment to you.

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Members of the St. James’s Place Wealth Management Group are authorised and regulated by the Financial Services Authority. The St. James’s Place Partnership and the title ‘Partner’ are the marketing terms used to describe St. James’s Place representatives. St. James’s Place UK plc: Registered Office St. James’s Place House, Dollar Street, Cirencester, Gloucestershire, GL7 2AQ, United Kingdom Registered in England Number 2628062

www.sjp.co.uk SJP2119-VR7 (04/09)