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How the Scheme works

The SchemeThe BOC Pension Scheme. is a defined benefit (DB) scheme. The amount of pension you build up in the Scheme from 1 April 2011 is based on:

• Your Final Pensionable EarningsIf you left the Scheme before 1 April 2011
  Broadly, the highest of:
  
  - The average of your Pensionable Earnings in your final three years' pensionable service;
  
  - The average of your highest three consecutive tax years' annual Pensionable Earnings in your final thirteen years' pensionable service; and
  
  - An average of your Pensionable Earnings over your entire pensionable service, revalued in line with the increase in the Retail Prices Index, capped at 2.5% a year.
  
  If you were an Active Member of the Scheme at 1 April 2011
  Broadly, the highest of:
  
  - The average of your Pensionable Earnings in your final three years' Post-1 April 2011 Pensionable Service;
  
  - The average of your highest three consecutive tax years' annual Pensionable Earnings in your final thirteen years' Post-1 April 2011 Pensionable Service; and
  
  - An average of your Pensionable Earnings over your entire Post-1 April 2011 Pensionable Service, revalued in line with the increase in the Retail Prices Index.
  
  Final Pensionable Earnings are based on your Pensionable Earnings, increases to which are subject to an annual 2.5% cap from 1 April 2011, averaged over five-year rolling periods.
  
  The same definition of Final Pensionable Earnings is used in relation to your Pre-1 April 2011 Pensionable Service except that the average of your Pensionable Earnings over your Pre-1 April 2011 Pensionable Service will be revalued in line with the full increase in the Retail Prices Index (and will not be capped at 2.5% a year). (an average of your Pensionable EarningsThe earnings on which your pension contributions are based. Pensionable Earnings include all contractual elements of your pay (including overtime and sick pay), before:
  
  - tax and deductions for contributions to the Scheme;
  
  - Additional Voluntary Contributions; and
  
  - deductions in relation to State sickness, Incapacity or invalidity benefits.
  
  Discretionary payments and the cash equivalent of benefits in kind are excluded.
  
  Any increases to Pensionable Earnings from 1 April 2011 are subject to an annual 2.5% cap, averaged over five-year rolling periods. The cap does not affect your actual pay.
  
  Please note that the cap on increases to Pensionable Earnings does not apply to your Pre-1 April 2011 Pensionable Service or if you left the Scheme before 1 April 2011.
  
  If you take advantage of Salary Exchange, or any of the Company's other voluntary benefits that are paid through salary sacrifice, your pension contributions will be based on your 'reference salary' (i.e. the Pensionable Earnings you would have received if you had not made contributions through Salary Exchange or taken the voluntary benefit). received from 1 April 2011 while you are an Active MemberA member of the Scheme who is making contributions or having contributions made on his or her behalf through Salary Exchange.);
• Your Post-1 April 2011 Pensionable ServiceThe time you have been an Active Member of the Scheme in years and complete months from 1 April 2011 onwards, used when calculating your Post-1 April 2011 benefits in the Scheme. For any period of part-time employment, your Post-1 April 2011 Pensionable Service will be adjusted proportionately. (the time you have been an Active Member in years and complete months plus any additional service granted); and
• An accrual rate that depends on your membership level.

Increases to your Pensionable Earnings are subject to an annual cap of 2.5%, averaged over five-year rolling periods. See Cap on increases to Pensionable Earnings for more information.

Your pension built up to 31 March 2011 is held within the Scheme, and calculated separately from the pension you build up after this date (see If you retire for more information). When you retire, your pension built up to 31 March 2011 (plus RevaluationThe increases applied to your pension to help it keep pace with inflation. Your pension built up to 31 March 2011 will be revalued between 1 April 2011 and the date you take your pension. Your pension earned from 1 April 2011 will be revalued if you leave pensionable service before your Normal Retirement Age and do not take an immediate pension.) is added to your pension earned from 1 April 2011 to give your total pension.

The Scheme is closed to new members. This means that if you're not already a member, you can't join. However, you may be eligible to join the RS section of the BOC Retirement Savings Plan.

Contributions

Contributions are made through Salary Exchange unless you opt out. Salary Exchange means that your salary is reduced by an amount equal to your contributions and the CompanyThe BOC Group Limited. makes the contributions on your behalf.

The contributions made depend upon the membership level you choose. There is also the opportunity to boost your pension by increasing contributions. See Your contribution rate for more information.

The Company meets the balance of the cost of providing your benefits. For more information, look at How much the Company contributes.

You receive

On retirement, you receive a pension for the remainder of your life (see If you retire). You can also exchange part of your pension for tax-free cash (see How the cash sum is calculated).

It may be possible to retire before the Scheme’s Normal Retirement AgeYour 65th birthday, or any other age notified to you by your employer. of 65. For more information see When you can retire.

There are a range of other benefits covering IncapacityA physical or mental illness or disability which in the Trustee's opinion (after considering evidence from a registered medical practitioner):
- is serious enough to prevent you from following any employment; and
- is considered permanent because you are unlikely to recover to any substantial degree., Ill healthA physical or mental illness or disability which in the Trustee's opinion (after considering evidence from a registered medical practitioner) is serious enough to prevent you from carrying out your normal occupation. and death.