IMI 2014 Deferred Fund

The IMI Pension Fund was established on 1 October 1970. If you’re a member, you built up pension linked to your service and salary during your career with IMI until the Fund closed to future accrual on 31 December 2010.

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Fund summary

The IMI Pension Fund was established on 1 October 1970. If you’re a member, you built up pension linked to your service and salary during your career with IMI until the Fund closed to future accrual on 31 December 2010. At that date, contributing members employed by IMI at that time became ‘Preserved Employed Members’ and joined the IMI Mercer Master Trust from 1 January 2011.

The Fund was split into two funds – the IMI 2014 Deferred Fund and the IMI 2014 Pensioner Fund. The IMI Pensioner Fund is being wound up as it no longer has any members.

The Funds were set up as a trust-based occupational arrangement and are managed by a Trustee Board in the interests of all beneficiaries. They’re administered by Willis Towers Watson and registered with the Pensions Regulator and HMRC. Fund assets are held under Trust and are entirely separate from those of the Company. As an entity in its own right, the Fund prepares its own financial statements called the ‘Report & Accounts’.

The Funds have a Trustee Board, with four Company appointed directors and four nominated by the membership (Member Nominated Trustee Directors).

The Funds are made up of four sections, each with its own set of rules. While contributing to the IMI Pension Fund, you might have paid Additional Voluntary Contributions (AVCs). The Savings Section of the IMI Pension Plan replaced the existing AVCs options, which ended in March 2006.

From April 2006, you could boost your pension savings by paying into the Savings Section of the IMI Pension Plan (administered by Standard Life) and/or transferring the value of your AVCs into the Savings Section.

If you were a member of the Savings Section and still employed by IMI in September 2013, you received details of how to continue to make payments to and/or transfer your AVCs into the Mercer Master Trust.

 

Sections of the IMI Pension Fund

The Fund is made up of four sections:

1. The IMI Section

  • Closed to new entrants from 1 July 2002.
  • Closed to future build up from 31 December 2010.

2. The Facsimile Section

  • Made up of members of the ICI Pension Fund before 6 April 1980.
  • The rules of the Facsimile Section were established to mirror the rules of the ICI Pension Fund.

3. The Main Section

  • For most new entrants from 1 July 2002 until the Fund closed to new entrants on 31 December 2005.
  • Incorporates the liabilities transferred from the former MKR Holdings Ltd and Associated and Subsidiary Companies Retirement Benefits Scheme brought into the Main Section on 1 July 2002.

4. The Senior Section

  • Includes the liabilities transferred in from the former IMI Supplementary Pension Fund.

 

Annual Pension Increase

Your pension increases each year on 1 January by the annual rise in the Retail Price Index measured to the previous September. Pension built up from 1 January 2006 increases by a maximum of 2.5% and pension built up before 1 January 2006 increases by a maximum of 5%. Exceptions to this are the MKR Section, where increases apply on 1 April each year, and the Facsimile Section, where increases apply on 1 November each year.

 

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Trustee Board

The Trustee of the IMI UK pension arrangements is IMI Pensions Trust Limited. The Directors of the Trustee Company are:

Actuarial Valuations of the IMI 2014 Pensioner Fund and 2014 Deferred Fund As at 31 March 2018, the Trustee asked the Funds’ actuary to conduct a full actuarial review of the funding levels.

The actuary also gave updates as at 31 March 2017 and 31 March 2016. The actuary produces different sets of numbers for the Trustee.

The main ones are:

  • The position on an ongoing basis; and
  • the position where the Funds are deemed to be ‘self-sufficient’. Self-sufficient means well-funded with so little investment risk that the Trustee would not need to rely on IMI in the future for any further contributions.

You can find a summary of those funding levels in the tables below.

On the Trustee’s key measure of self-sufficiency, the funding position, improved from 85.6% to 90% for the year to 31 March 2019.

 

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Actuarial Valuations of the IMI 2014 Pensioner Fund and 2014 Deferred Fund 

As at 31 March 2018, the Trustee asked the Funds’ actuary to conduct a full actuarial review of the funding levels. The actuary also provided updates as at 31 March 2017 and 31 March 2016. The actuary produces different sets of numbers for the Trustee, the main ones being: 

  • the position on an ongoing basis; and
  • the position where the Funds are deemed to be ‘self-sufficient’. ‘Self-sufficient’ means well-funded with so little investment risk that the Trustee would not need to rely on IMI in the future for any further contributions.

A summary of those funding levels is shown in the tables below. On the Trustee’s key measure of self-sufficiency, the funding position improved from 85.6% to 90% for the year to 31 March 2019.

 

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Report and accounts

Here you can find a summary of the accounts for the IMI 2014 Pension Fund. You can download the full report and accounts for the last three years here:

IMI 2014 Deferred Fund 2018 accounts signed with opinion

IMI 2014 Pensioner Fund 2018 accounts signed with opinion

 

Summary Funding Statements

Here you can find annual updates on the IMI 2014 Deferred Fund's funding position:

Summary Funding Statement as at 31 March 2020

Summary Funding Statement as at 31 March 2019

 

Statement of Investment Principles

Here you can read the Statement of Investment Principles for the IMI 2014 Deferred Fund. This includes information about the Trustee's investment strategy:

IMI 2020 Deferred Fund Statement of Investment Principles

 

 

Annual Implementation Statement

IMI Deferred Fund Annual Implementation Statement

 

Fund Benefits

The benefits the Fund currently provides are set out in the Trust Deed and Rules and are summarised in the Fund booklets. While every effort is made to ensure the accuracy of the information in these booklets, in the event of a discrepancy the Trust Deed and Rules will override the booklet. In brief:

On leaving IMI with a deferred pension:

 

IMI Section Member

  • IMI Section member (joined the Fund before 1 July 2002) – if you left IMI before November 1987 your deferred pension may be payable at age 65. The majority of IMI Section deferred members will have a payable age of 60 or later if you’re still working for IMI after you’re 60.
  • You can leave your deferred pension in the Fund; or transfer it to another registered pension arrangement; or you can apply for early payment at a reduced rate once you reach age 50.

Main Section Member

  • Main Section member (joined the Fund on or after 1 July 2006) – your deferred pension is payable at age 65 or later if you’re still working for IMI after you’re 65.
  • You can leave your deferred pension in the Fund, or transfer it to another registered pension scheme; or you can apply for early payment at a reduced rate from age 55 subject to Trustee consent.

MKR Members

  • MKR members – your deferred pension is due for payment at age 60 or later if you’re still working for IMI.
  • You can leave your deferred pension in the Fund; or transfer it to another registered pension arrangement; or you can apply for early payment at a reduced rate once you reach age 50.

Facsimile Members

  • Facsimile members will have a variety of ages when their deferred pensions are due, i.e. 60, 62 or 65.
  • You can leave your deferred pension in the Fund; or transfer it to another registered pension arrangement; or you can apply for early payment at a reduced rate once you reach age 50.
  • You’ll have been written to when you left IMI and told the amount of your deferred pension at that time and at what age/date payment is due. It’s your responsibility to keep the Trustee informed if your name, address or dependants change.

 

At retirement

You’ll receive an annual pension, payable for life. Under current tax law, you can exchange part of this pension for a tax-free lump sum. Automatic Transfer to the IMI 2014 Pensioner Fund or IMI 2014 Deferred Fund The IMI Pension Fund was split into two new schemes at the beginning of December 2014. Members of the IMI Pension Fund who weren’t eligible to or chose not to receive a cash lump sum were automatically transferred to the IMI 2014 Pensioner Fund or the IMI 2014 Deferred Fund, as follows:

  • Pensioners of the IMI Pension Fund were automatically transferred to the IMI 2014 Pensioner Fund; and
  • Deferred members of the IMI Pension Fund were automatically transferred to the IMI 2014 Deferred Fund.

 

In relation to the transfer, please note that:

 

  • There are no changes to your benefits. Your benefits and interests under the new Fund haven’t changed, i.e. you’ve been transferred into the IMI 2014 Pensioner Fund or the IMI 2014 Deferred Fund with the same benefits as those you had in the IMI Pension Fund; and
  • Your benefit entitlement is now provided by the IMI 2014 Pensioner Fund or the IMI 2014 Deferred Fund. You’ve now stopped having any entitlement to benefits under the IMI Pension Fund.

If you have any questions now or in the future about the IMI 2014 Pensioner Fund or the IMI 2014 Deferred Fund, please get in touch with the Fund’s administrator, Willis Towers Watson:

Email: imipensions@towerswatson.com

Telephone: 01737 788145