In late July 2020, the Company wrote to active members of the Mercedes-Benz Financial Services UK Limited (Final Salary) Pension Scheme to advise them that they were opening a 90-day consultation on proposals to close the Scheme to future accruals. If implemented, this would mean that current employees who are members of the Scheme would cease to build up future service entitlements and their final salary pension would be based on the length of service attained as at 31 December 2020. Those affected by any such decision would then join a separate Defined Contribution ("DC") scheme in order to build up funds in addition to their final salary pension.

The reason for the Company considering this move is to secure the future funding of the Final Salary Pension Scheme and we wish to reassure you that the proposals will not affect the pensions that have been built up in the Scheme prior to 1 January 2021. Members who are pensioners or whose pensions are deferred can be reassured that their situation would remain unaffected under the proposals.

The Trustee Board are in frequent contact with the Company and are monitoring the situation closely. The Scheme is currently in a strong financial position and the Trustee Board do not believe the proposals will negatively impact this.

If any impacted member would like to provide feedback on the consultation which the Trustee Board can then feedback to the Company (anonymously if desired), then please contact mbfspensions@mercer.com

This Summary Funding Statement provides an update on how the Scheme’s financial position has changed since the last three-yearly actuarial valuation as at 5 April 2018.

» Read the 2019 Summary Funding Statement

As well as the health and social impact COVID-19 is having around the world, the pandemic created a sudden fall in global financial markets which, having recovered a little, remain volatile.

The Trustee invests the Scheme’s assets in a range of funds, including UK and global shares, whose performance has been affected by the COVID-19 pandemic. They are therefore closely monitoring the economic situation and the ongoing performance of the Scheme's investments.

Will COVID-19 affect the amount of pension I receive?

No, the amount of pension you receive when you retire is not determined by how well the Scheme's investments perform. It is calculated using a set formula based on the length of time you worked for Mercedes-Benz (pensionable service) and your final pensionable earnings at the end of your employment.

If you are already receiving a pension from the Scheme, your pension will continue to be paid. We have robust administration in place and all pension payments continue as normal.

Who should I contact with a question about my pension?

The Scheme Administrator, Mercer Limited, is continuing to support members but they are prioritising key activity (such as processing pension payments) and may not be able to respond to individual queries as quickly as they usually would. If possible, it would be best to email them if your query isn’t urgent.

You can contact Mercer Limited at:

Email: mbfspensions@mercer.com

Phone: 020 8686 2466

Post: 4 Bedford Park, Croydon, CR0 2AP

If you need more specific advice on your pension, we recommend you speak to an impartial financial adviser, regulated by the Financial Conduct Authority (FCA). However, please be aware that a financial adviser will charge for their services.

Pension scams are a growing threat. They're getting more sophisticated and harder to spot. A new law has banned cold-calling about pensions, but it won't eliminate the dangers altogether. Here are some ways to help you protect yourself.

What to look out for

Be suspicious if someone you don't know contacts you about your pension. Look out for the following warning signs:

• Offers of a ‘free pension review’
• Help accessing your pension before you're 55
• Claims you can get higher returns on your pension savings
• Encouragement to invest quickly to avoid missing out on a discount or bonus.

What to avoid

Make sure you do not:

• Give out your personal details or bank details to anyone
• Let someone you know talk you into accepting an offer (they may have been scammed too!)
• Take an offer from a cold caller or an email to transfer your pension into another scheme
• Fall for perks, like the offer of a personal home visit or hand-delivered paperwork.

What to do if you think you’ve been targeted

Report anyone you think may be a scammer to the police at actionfraud.police.uk

You can get more information on scams at fca.org.uk/scamsmart

If you want advice about your pension, we strongly recommend you speak to an impartial financial adviser that has been authorised by the Financial Conduct Authority (“FCA”). Check the FCA register at register.fca.org.uk or phone the FCA on 0800 111 6768.