Additional Voluntary Contributions (AVCs)

Additional Voluntary Contributions (more commonly called AVCs) are extra contributions that you can pay on top of your Core Contribution to boost your retirement savings.

Annual Management Charge (AMC)

There is an Annual Management Charge of the fund value (the amount depends on the fund chosen) that covers the administration and investment managers fees for your account.

Annuity

Put simply, an annuity is an investment that gives you a regular income (or pension) during your retirement. You would normally buy an annuity from an insurance company.

Benefit Pay

Benefit Pay is the definition of pay used to calculate your ill-health and death benefits. It is the greater of your annual rate of basic earnings as determined by the Company at the date of death or retirement due to ill-health, or your total Plan Pay on which you have paid Core Contributions for the previous twelve months ending on the date of death or retirement due to ill-health.

Company

This term refers to Mitchells & Butlers plc, the principle employer, and any other employer that participates in the Plan.

Core Contribution

You can pay (or the Company pays on your behalf if you participate in NICwise) a Core Contribution of 4% or 5% of your Plan Pay into your account.

Fixed-term employees

This term describes employees whose contract of employment will generally terminate on the expiry of a specific term, on the completion of a particular task, or on the occurrence of a particular event.

Matching Credit

The Matching Credit is 1.5 times your Core Contribution and is paid by the Company.

Minimum Pension Age

Minimum pension age is 55.

Members who are employed by the Company, have continued service and who joined the Plan before 6 April 2006 have a ‘protected minimum pension age’ and may receive their pension from age 50, provided they meet certain conditions on retirement.

NICwise

NICwise is a National Insurance contribution efficient way of paying contributions to the Pensions Plans. NICwise reduces the amount of National Insurance contributions payable and so increases your take home pay and also reduces the amount of National Insurance contributions payable by the Company.

Normal Pension Age

This is your 65^th Birthday for Mitchells & Butlers Pension Plan and 60^th Birthday for Mitchells & Butlers Executive Pension Plan.

Plan Pay

Your Plan Pay is your basic 4 weekly pay before tax. In some cases, it may include other earnings. The Company will tell you if this applies to you. If you participate in NICwise, it is deemed to include the pay you would have received if you did not participate in NICwise.

State Pension Age

Males:

• For males born before 6 December 1953 State Pension Age is 65.
• For males born between 6 December 1953 and 5 April 1960 State Pension Age will gradually rise to age 66.
• For males born on or after 6 April 1960 the State Pension age is set to increase to 67 from 2036 and 68 from 2046.  The Government is considering the timetable for these increases.

Females:

• For females born before 6 April 1950 State Pension Age is 60.
• For females born between 6 April 1950 and 5 December 1953 State Pension Age will gradually rise to age 65.
• For females born between 6 December 1953 and 5 April 1960 State Pension Age will gradually rise to age 66.
• For females born on or after 6 April 1960 the State Pension age is set to increase to 67 from 2036 and 68 from 2046.  The Government is considering the timetable for these increases.

More details and a State Pension Age calculator are available at www.direct.gov.uk/en/Pensionsandretirementplanning/index.htm

Target Pension Age

This applies to the Lifestyle investment option only. It is the date on which the switch of your fund from equities to gilts and cash is based. Currently this switch begins 10 years before your Target Pension Age. Unless you notify DC Choice otherwise your Target Pension Age is your 65th birthday.