A message from the Chair of The Bank of New York Pension Plan (the Plan).

Over the past months we know many of you have continued to adapt to changes posed by the pandemic and we hope the Government roadmap out of lockdown will offer a chance to reconnect with friends and loved-ones. As Trustees we continue to operate virtually, which is working really well for us.

Given the importance of the challenges we face as a result of climate change, the Trustees will also be continuing to place emphasis on this topic as part of their future agenda. Following its research, The Pensions Regulator (TPR) has found that ignoring climate change risks savers’ retirements and as a result it has called on all trustees to consider climate change in the context of pension savings. I wanted to take this opportunity to reinforce our commitment to this topic.

In 2019 and as part of considering Environmental, Social and Governance (‘ESG’) factors in the investment process, the Trustees added a new fund to the Plan’s range, the BNYPP Global Multi-Factor Sustainable Equity Fund (GMFSE). This fund was created with the objective of incorporating ESG considerations, along with a range of specific financial factors, to help generate long-term investment returns greater than the chosen benchmarks. As part of the investment changes effective from 3 July 2019, the GMFSE is now a key component of the Balanced Lifestyle Strategy (Default) and Alternative Lifestyle Strategy options.

The Trustees will also be working to ensure that the Plan complies with all areas of the proposed requirements around mandatory disclosure under the Taskforce on Climate-related Financial Disclosures (TCFD). This means we will, in the future, report and disclose to you how we’re doing against these climate measures.

We encourage you to regularly review your investment choices in line with your retirement goals. You can do this by going to ‘My Investments’ on your online Plan account.

Finally, we’d like to add that the latest Summary Funding Statement is now available for you to review. The statement sets out the Plan’s funding level which determines its ability to pay benefits due. Please log in to your personal account if you would like to find out more.

Take a moment to plan ahead if you’re thinking of retiring

We’ve put together the following steps to help guide you through the process of retiring. From getting hold of your retirement pack to receiving your first monthly pension payment - it’s important to factor in the relevant timescales to your financial planning.

Receiving your retirement pack

You will normally receive a retirement pack 4-6 months ahead of your Normal Retirement Age (NRA), although the point at which you retire is entirely your decision once NRA has been reached. Following your actual retirement date, it then typically takes a further 2-3 months before your benefits become available, as your pension benefits are not simply held in a savings account but need to be calculated and processed.

As a result, you should factor in the eventuality that this gap may leave you without salary or pension income, and you will need to plan accordingly to ensure that you have enough savings to cover your day to day living costs over this period.

The following steps show in more detail how the retirement process works:

Step 1: About 4-6 months ahead of reaching NRA at age 65, you will receive an automatic retirement pack from the Plan administrator, Willis Towers Watson (WTW).

Step 2: You will then need to respond to WTW to confirm whether or not you wish to retire, and assuming this is the case, if this will be at NRA or at a later date. Within your retirement pack you will be presented with a series of options as to how you may wish to access your pension. These will include the following:

• taking your benefits from the Plan as an income
• taking your benefits as an income and choosing to take part of your Defined Contribution benefits as a lump sum cash payment (up to a maximum of 25%)
• transferring your pension to another arrangement either partially or fully*

^{*In the event you wish to transfer out of the Plan, you’ll need to take independent financial advice if the value of the guaranteed benefits in your Plan is in excess of £30,000. You can obtain advice from Origen who have been approved by The Bank of New York Mellon. Origen are regulated and authorised by the Financial Services Authority, to provide financial advice to help you make your future retirement decisions. You can, however, choose your own provider if you wish.}

Step 3: Having advised the Plan administrator of your chosen retirement option, you should now expect a period of 2-3 months before you receive your first pension payment. The Plan administrator will check your pension record before calculating your benefits, following which they will then liaise with the Benefits Team at the Bank if you are an active member.

Step 4: Depending on your selected retirement option, you will be advised of the next steps by the Plan administrator. Whichever way you decide to take your money from the Plan, you must wait until your final contribution to the fund has been made, following which your funds will be disinvested within 7-10 working days.**

^{**If you are a deferred member, disinvestment can take place a week before your retirement date or on your actual retirement date.}

If, for example, you wish to transfer all of your benefits out of the Plan, then the Plan administrator will send you a transfer quote and should you wish to proceed, you will be able to access the full range of benefit options from your chosen provider. Please note that WTW will manage the transfer process for defined benefits up to £30,000.

In the case of taking your benefits from the Plan as an income, and after disinvestment of your fund, WTW will then work with HUB Financial Solutions*** to obtain an annuity quote to reflect the disinvested value of the fund. This quote is then reviewed by WTW and if it is satisfactory the annuity providers will be requested to send this to you. On receiving your annuity quote, you will then need to liaise with the annuity provider to complete the annuity application form, together with any additional information that they request, before returning the forms to HUB Financial Solutions. The timescale for this process is dependent on how quickly you return the documentation to HUB Financial Solutions and deal with their potential enquiries.

^{***Or you may wish to seek an alternative provider.}

Please bear in mind that although 2-3 months is the indicative timescale for receiving your first pension payment following your retirement, the ultimate length of this process depends on individual circumstances.

You can contact the Plan administrator, Willis Towers Watson, using the details below:

Email: bnyhelpline@willistowerswatson.com

Phone: 01737 788 120

Post: The Bank of New York Pension Plan

Willis Towers Watson

PO Box 545

Redhill

Surrey

RH1 1YX

How can I access my Plan account?

You can carry out most transactions online in your Plan account at www.BNYPP.com.

You should have a user name and password which will allow you to log on, but if you havent, please contact the administration team (details above).

Are you aware of the recent tax allowance changes?

For some individuals, but not those who retired prior to 2006, there are two limits which can restrict the tax efficiency of pension savings, known as the Lifetime Allowance (LTA) and Annual Allowance (AA).

Recent updates following the March 2021 UK budget:

• The Lifetime Allowance (LTA) for the 2021/22 tax year is £1,073,100 and is expected to remain frozen at this level until April 2026.
• Currently, the standard AA remains £40,000 for the 2021/22 tax year. For individuals with total taxable income from all sources (plus any pension savings made during the tax year) above certain limits, the AA reduces on a tapering scale down to a minimum of £4,000 per annum.

What is the Lifetime Allowance?

The Lifetime Allowance (LTA) is the maximum value of total pension benefits you can build up over your life without incurring a tax charge. The standard LTA is currently expected to remain frozen at £1,073,100 until 2026. For Defined Contribution (DC) benefits the LTA value is equal to the value of your fund. For Defined Benefit (DB) benefits, the LTA value is the starting level of your annual pension multiplied by 20, plus the value of any tax-free cash lump sum.

Your Plan benefits are a combination of DB and DC benefits. The value of LTA you use up is worked out as 20 times your guaranteed pension at retirement date in the Plan, plus the value of the remainder of your fund that is not used to provide the guaranteed pension. You can find how much of the LTA you have used up by checking your benefits statement. When you receive a retirement or transfer value quotation this will include details of how much of your LTA will be used under each of your benefit options.

Am I affected by the LTA?

You will need to consider whether the total combined value of your pension savings (from all the pension schemes you may have) may exceed the LTA when you take your benefits. The way your benefits are valued and tested against the LTA depends on the type of pension plan:

• For Defined Contribution (DC) benefits the LTA value is equal to the value of your fund.
• If you also have DB benefits in other pension arrangements, the value is the starting level of your annual pension multiplied by 20, plus any tax-free lump sum plus any Additional Voluntary Contributions.
• Your Plan benefits are a combination of DB and DC benefits. Your total LTA value at retirement will be equal to 20 times your guaranteed pension, plus the value of the remainder of your fund that is not used to provide the guaranteed pension.

For more information on the current LTA, visit the Government website at www.gov.uk/tax-on-your-private-pension/lifetime-allowance

What is the Annual Allowance?

The Annual Allowance (AA) is the maximum total contributions that can be paid into your pension in one year by you and your employer, tax free. The standard AA is £40,000 for the 2021/22 tax year. You can carry forward unused AA from the three previous tax years.

How the Annual Allowance (AA) tapers

If your taxable income including pension contributions is more than £240,000 for the 2021/22 tax year onwards, you will have an AA of less than £40,000. The £40,000 AA reduces by £1 for each £2 above £240,000, until it reaches £4,000 for incomes of £312,000 and above.

If your taxable income (including pension contributions) is £240,000 or less, the tapered AA will not apply.

If I might be affected, what do I need to consider?

You should consider whether you need to take action to prevent any tax charges. You should review your expected pensions contributions for 2021/22 and the preceding 3 tax years.

If you do exceed the AA, you will have to declare this on your Self-Assessment tax return and pay income tax on the excess at your marginal rate.

Where can I find a financial adviser?

Neither the Company, Trustees nor the Plan’s administrator can give you financial advice. If you feel that you need guidance on managing your tax with regards to your pension savings, we strongly recommend that you speak to an impartial financial adviser. To find an impartial financial adviser, visit: www.moneyadviceservice.org.uk/en/categories/financial-help-and-advice

You can also contact Origen who are the preferred financial advisers who have been appointed by BNY Mellon and the Trustees of the Bank of New York Pension Plan (BNYPP).

Telephone: 0800 092 8006*. Lines are open 8.30am - 5.30pm, Monday to Friday

Email: BNYMellonPP@origenfs.co.uk

^{*All calls are recorded for business purposes. Calls are free from landlines & from mobiles if calling from within the UK Email: BNYMellonPP@origenfs.co.uk.}

Advice from Origen is available to you at a reduced cost as an employee or ex-employee of the bank. It is important to note though that it is not a recommendation from the Trustee that you use Origen as your financial adviser, as the Trustee cannot offer advice about which financial adviser you should use.

Introducing Origen financial advice

As you approach retirement, you’ll have some important decisions to make and you should ask a financial adviser to help you make sense of your options. Even if you are not yet thinking about life after work but are considering transferring or partially transferring your Plan benefits, a financial adviser can help you to make informed decisions.

The Bank of New York Mellon has appointed Origen, who are regulated and authorised by the Financial Services Authority, to provide financial advice to help you make your future retirement decisions. As Origen have been appointed by the Bank, their financial advice is available to Plan members at a discounted price. Their advice service they provide aims to give you guidance and help in finding the right retirement option for your own personal circumstances.

It’s important to note that the choice of a financial adviser is entirely up to you and it is important to look around and find the adviser that you feel is best suited to your personal circumstances. You can find financial advisers in your area by visiting www.unbiased.co.uk.

If you choose to use Origen for retirement advice the cost of the service is £975 + VAT*. There is also an additional fee of £410 + VAT* if you would like a Transfer Value Analysis (TVAS). £500 can, if you choose, be taken from your existing pension savings to go towards meeting these costs. All fees are payable at the end of the advice process.

^{*There is an additional fee of £150 + VAT where advice in relation to the Lifetime Allowance or Annual Allowance is required.}

To find out more about Origen and how they can help you, please contact:

Origen Financial Services

Ascent 4, 2 Gladiator Way

Farnborough, Hampshire

GU14 6XN

Telephone: 0344 209 8006

Email: BNYMellonPP@origenfs.co.uk

Website: www.origenfs.co.uk.