© Copyright Mercer Employee Benefits Limited 2007

Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority.Registered in England No. 404370. Registered Office: 1 Tower Place West, Tower Place, London EC3R 5BU.

Making

YourChoices

Presentation Title

Date

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What I/we will cover today

Reminder of the changes

Deciding how much to contribute

What do you need to consider about investments

The investment funds

The next steps

Questions and answers

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A brief summary of the changes

Pension benefits build up through Investor Plan from 01/01/2008 on enhanced basis

Pensions benefits built up before 01/01/2008 are protected and will increase

The Company will pay off the deficits

From 01/01/2008 you will no longer build up a pension from the Defined Benefit section of the Siemens Benefit Scheme

Death in service and ill health benefits protected at minimum of current amount for next 5 years

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How does defined contribution work?

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Contributions

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Contribution type

Company match

Tax relief NI saving Flexibility to change

The types of contribution

Matched

AVC

×

× ×

××EDC

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What can you afford to pay?

Maximising the Company match

The earliest you can access your savings is age 50 (55 from 6th April 2010)

What are your other assets?

When do you want to retire?

Deciding how much to contribute

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BasicsInvestment

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Savings RiskSavings Risk

Volatility RiskVolatility Risk

Inflation RiskInflation Risk

Investment risk is the chance that your investment will be lower than you expect

Investment risk

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Cash investments offer the most security but may not grow fast enough to keep pace with inflation

Also known as ‘gilts’ when issued by the UK Government, bonds represent loans to companies or governments that are repaid with interest to investors over time

Also known as ‘stocks and shares’, equities represent part ownership of a company, including its earnings and assets

Equities, bonds and cash are the building blocks of most investmentsEquities, bonds and cash are the building blocks of most investments

Equities

Bonds

Cash

Investment choices

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Please note: Any statement of past performance of any particular fund is not a guide to future performance. Also investments/funds denominated in a foreign currency will fluctuate with the value of the currency and any income from foreign investments will fluctuate in value.

Please note: Any statement of past performance of any particular fund is not a guide to future performance. Also investments/funds denominated in a foreign currency will fluctuate with the value of the currency and any income from foreign investments will fluctuate in value.

Cash

High ReturnEquity

Bonds

Low ReturnHigh RiskLow Risk

Investment choices

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Projections are based on Market Interest Rate Expectations.

Source – Bank of England, CPI Fan Chart - May 2007

Inflation risk

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Consider how long you have until retirement…

This graphic is not intended to recommend a specific course of action for you. Each person would have to consider their own attitude to risk in the context of their overall retirement and private financial planning.

The road to retirement

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Passive (Index-tracker)

Aims to track the performance of the market (even when it falls)Reduces risk of performing less well than a market

Investment management fees are lower

Active-management:

Aims to outperform the marketPotentially better returns than Index Tracker but risk that could do worse

Investment management fees are higher

Passive or Active

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The equity funds

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Property, bonds and cash

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Specialist funds

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Lifestyle Strategy

Private Fund

Fixed Annuity Target

Cash

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Sign and return ‘Employment Contract Amendment’ forms and return by 24th October 2007

My choice enrolment process (details sent out in last week of October):Decide how much to pay

Choosing where to invest (‘Lifestyle’ or ‘Freestyle’)

If select ‘Freestyle’, additional form issued in first week of December

The next steps

© Copyright Mercer Employee Benefits Limited 2007

Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority.Registered in England No. 404370. Registered Office: 1 Tower Place West, Tower Place, London EC3R 5BU.

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Remember, if you select the same contribution

rate your take-home pay will go down

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Helpdesk:email: pensions.review.css.uk@siemens.com; external tel: 0845

6039972; internal tel: x5555 – option 6

Calculators and modellersPensions modeller: http://siemens.pensionline.org

Contributions calculator: http://intranet.css.siemens.co.uk/pensions

IFA Advice:First £200 reimbursed, claim form returned by 30th November 2007

Additional Support Available?

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Yourquestions