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Flexible retirement

Flexible retirement has been introduced from the 6th April 2006. Flexible retirement means exactly what it sounds like it means - more freedom to draw your pension in the way that most suits you. You may wish to consider:

1. Taking your pension whilst continuing to work

Subject to being at least the Minimum Retirement Age, you may put your pension benefits into payment without leaving O2. This is a change to the position prior to 6th April 2006 where the law meant that you had to leave the Company you worked for in order to take your pension benefits. You may use this approach in conjunction with 3 and 4 below. Your pension must not be less than any Guaranteed Minimum Pension (GMP) should you take it early. Your pension will be lower the earlier you take it because it will be based on your Final Plan Salary and Pensionable Service at the date you retire. It will also be reduced to make allowance for the fact that it is being paid earlier and so will be paid for longer.

2. Postpone taking your benefits

You will not be forced to take your pension when you reach age 60 or 65 or on leaving the Company at either of those ages. You can choose to take your pension anytime before your 75th birthday at which time tax rules require that you put your benefits into payment.

3. Take benefits derived from your Additional Voluntary Contributions at a different time to your main entitlement

You are able to take the benefits that result from your Money Purchase Additional Voluntary Contributions either before, after or at the same time as your main entitlement. This is subject to satisfying the following conditions:

1. The first payment must not commence prior to your Minimum Retirement Age.
2. All benefits must be in payment before or on your 75th birthday.
3. Tax free cash must be taken at the same time as the pension to which it relates.
4. Early payment of your main entitlement must satisfy the conditions regarding GMP and reduction for early payment as outlined in 1 above.

4. Make more savings

If you put your benefits into payment under Section 2, you may join Section 1 of the Plan in order to make further retirement savings. You will need to be in the employment of the Company and either under age 65 or have Company consent. You will be subject the full terms and benefits of Section 1 with the exceptions that your death benefits will be altered as noted below.

• If you do not make further contributions to the Plan under 4 above, you will be entitled to 2 x salary as though a non member.
• If you join Section 1 of the Plan and contribute at least 4% of salary you will be entitled to a lump sum death benefit of 3 x salary. However, you will not be entitled to 30% dependent's pension cover as pension in payment may provide a dependent's pension.