To help you get started we can provide you with:

• A letter to help you consult with your employees about choosing the scheme
  
• Material to help you communicate the importance of a stakeholder pension scheme to your employees in the clearest possible way
  
• Access to our informative and regularly updated website.

Simply call our Customer Service Centre 0845 070 6666* (Monday to Friday, 8:30am to 6:00pm), if you would like any of this material.

*Calls may be monitored or recorded for quality and security purposes.

The annual management charge on the value of the fund you accumulate is currently 0.85%, this is well below the 1.5% maximum annual management charge currently permitted by the Government. For members who have been in the scheme for more than ten years the Government reduces the maximum annual management charge to 1.0%.*

* The annual management charge may vary in the future and may be higher than it is now. Further details can be found in the policy document.

• You and your employees can pay on a weekly, four-weekly, monthly, yearly or one-off basis.
  
• You and your employees can increase, decrease, stop or restart payments at any time - the charges will continue even if you stop regular payments. Our charges may vary in the future and may be higher than they are now.
  
• Payments can begin from a £10 regular or one-off payment.
  

• The Government limits the amount that can be contributed every year before suffering tax penalties. This is called the Annual Allowance. It also limits the total amount they can receive in pension benefits over their lifetime before suffering tax penalties. This is called the Lifetime Allowance.
  
  Annual Allowance
  
  The government limits the amount that can be contributed every year before incurring tax penalties. This is called the 'Annual Allowance'. The level of Annual Allowance is currently £50,000. Further details can be found in your Key Features Document.
  
  If your employees are also a member of a salary related company pension scheme, any increases in the value of their pension under that scheme will also count towards the Annual Allowance.
  
  Lifetime Allowance
  
  If the value across all your pension funds exceeds the Lifetime Allowance at the time you take your benefits, a tax penalty will be payable on the excess amount. The limit for 2011/12 is £1.8 million and with effect from 6 April 2012 will reduce to £1.5 million. The government has introduced protection, which you will need to apply for by 5 April 2012, if you expect the value of all your pension funds to be in excess of £1.5 million when they are taken. If you are affected by this limit you may wish to contact a Financial Adviser, for which you may be charged.
  

We offer your employees the following payment options.

• Direct Debit. This is an easy way for your employees to pay, and if you do not intend to contribute to your employees' stakeholder pensions it might be the simplest solution for you.
• Straight from their pay (payroll deduction). If your employees ask for this, you must enable them to do it. We recognise this is one of the most complex parts of setting up your stakeholder scheme so if you would prefer to call us, we will explain everything.
• Cheque

Employers - payments are a deductible business expense. Your tax advisers will have full details.

Employees - Since 6 April 2008 the basic rate of tax is 20%. This means that for every £1 the employee pays into the plan HM Revenue & Customs pays an extra 25p into their plan.

For individuals liable to income tax at a higher rate than the basic rate, any additional tax relief they may be entitled to can be claimed back from HMRC through their annual tax return.

The above is based on our understanding, as at February 2011, of current taxation, legislation and HM Revenue & Customs practice, all of which are liable to change without notice.

The impact of taxation (and any tax relief) depends on individual circumstances.

• You can usually take up to 25% of your pension fund as a tax-free lump sum when you buy your annuity. Under the terms of the current contract you will need to do this by your 75th birthday. Anyone unable to work because of ill-health may still be allowed to take their retirement benefits before the minimum retirement age.
• Pension payments can remain the same each month, increase each month at a flat rate or increase in line with the Retail Price Index.
• There is a standard limit on tax free cash: a maximum of 25% of the plan value. Someone who is terminally ill may also be able to take their entire pension as a tax free lump sum.

If the employer is making regular contributions and the full life cover cost can be deducted from these the employee can take out life cover which will increase the amount the plan pays out if they die before they have started taking retirement benefits.

• There are no Government restrictions on the amount of life cover that they can have. However, the employee may be liable for a tax charge if, the total cost of the life cover, together with the cost of their pension benefits to all pension arrangements, is in excess of the Annual Allowance. In such circumstances the employee will be subject to an Annual Allowance Charge on the excess amount. Also, if the lump sum paid at death, together with the value of all pension benefits payable, is greater than the Lifetime Allowance then the employee will be subject to a Lifetime Allowance Charge on the excess amount.
  
• The full cost of any life cover the employee may choose will be deducted from the payments made to the plan by you, the employer. This cost will normally increase each year as the the employee gets older. This may have the effect of reducing the payments made towards the employee's retirement benefits. The employee should regularly review payments into their plan.

If regular payments into the plan stop, or are suspended, your employees' life cover will end. If regular payments are reduced, their life cover may also have to be reduced.

With the TUC Stakeholder Pension Scheme, your employees can make the most of their savings. The Scheme offers a range of investment options with a choice of twelve funds, which are described in the document " A Guide to Fund Options". Your employees can invest money in just one of the funds, or split payments* between more than one fund.

The Lifestyle option, managed by Prudential M&G, is our default fund so if your employees don't choose, we will invest their payments in this. Find out more about this option in the "A Guide to Fund Options".

This fund doesn't represent a recommendation on behalf of Prudential and your employees' should consider and choose funds to suit their needs. If they are unsure as to the suitability of this product or fund choice, they should seek financial advice. Please note they may be charged for this advice.

Your employees can switch funds by phone, by post or by the web - For more information on funds please refer to the document "A Guide to Fund Options".

The value of an investment may go down as well as up and your fund value in the future may be less than the payments you have made.

Please note: * does not apply to the Lifestyle option

The above is based on our understanding, as at February 2011, of current taxation, legislation and HM Revenue & Customs practice, all of which are liable to change without notice. The impact of taxation (and any tax reliefs) depends on individual circumstances.