Protection

Pension law has changed regularly over the last 40 years and it is likely that it will continue to develop over coming years. In the course of the last set of changes at 6th April 2006 O2 approach was to, where possible, protect members existing entitlements to benefits. Under Section 1 of the Plan most of the benefits that members enjoyed prior to the 6th April 2006 were able to be maintained and improvements to benefits, such as the ability to contribute more and flexibility in retirement, have been added. However, there are some aspects that O2 has been unable to maintain and these are listed below:

Tax treatment of your benefits

The tax treatment of your benefits is subject to the prevailing legislation. The change in legislation at 6th April 2006 will be to the benefit of the majority of O2's Pension Plan members but, for those that are detrimentally affected, O2 and the member is bound by the new tax law. (Full details on the implications of the change in tax law can be found under Important tax allowances).

Children's Pensions

Pensions to Children must, post 6th April 2006, cease by the child's 23rd birthday even if the child remains in full time education.