Defined Contribution members
Defined Contribution scheme members will have a charge deducted from your fund to cover the administration of the fund you are invested in.
If you are invested in a Target Date Fund there is a charge of 0.5% per annum which is deducted from your fund while it remains invested in the Scheme.
Other fund expenses also apply up to a maximum of 0.01% a year.
The total charges deducted from your fund may be up to 0.51% each year and a transaction cost may also apply.
If you decide to invest in one of the following self-select funds:
• Socially Responsible Investment Fund
• Global Equity Fund
• Bond Fund
• Index Linked Gilts Fund
the annual Charge and other fund expenses are 0.45%
If you are invested in Ethical TDF Pre-1999 (if you joined the Ethical Fund before October 1999, you may have funds invested in a related Ethical TDF Pre 1999), the total charges, including the annual fee and other fund expenses, are up to 0.53%.
If you are invested in the Ethical TDF Post-1999 the total charges, including the annual fee and other fund expenses , are up to 0.72%.
If you are invested in Property Fund the total charges, including the annual fee and other fund expenses, are a total expense ratio of 1.02%, with a property expense ratio (PER) of 0.4%. The PER is the cost associated with the management and operation of the physical properties in the portfolio.
If you are invested in Cash Fund the total charges, including the annual fee and other fund expenses, are up to 0.45%. This has been reduced from 0.46% from 1st September 2020.
If you are invested in Diversified Growth Fund the total charges, including the annual fee and other fund expenses, are up to 0.52%. This has been reduced from 0.97% from 1st September 2020.
The fund value that you are quoted at any time will take into account any fees charged. Further information can be found here.
Transaction charges may also be payable in addition to the above, for example broker commission, stamp duty or the costs of buying and selling investments. These charges vary depending on a variety of factors including, the amount of money being switched on any one day.
Further details of the charges deducted from your fund are available on request. If you need anything please contact us.
Setting up a pension from a Defined Contributions fund
When you draw your benefits there may be charges for setting up a pension (or ‘annuity’) with another provider, as we do not pay pensions direct to members of Defined Contribution schemes.
You may want financial advice before taking your benefits and below are links to the government service (Pension Wise) and a site which allows you to search for financial advisors in your area:
We can also pass your details to the Mercer Pension Decision Team who may be able to help you. There is a charge for this service.
Quotes for Defined Benefit scheme members
A charge would be applicable for additional quotations where a number of quotations have been provided over the previous 12 month period. Outlined below are the numbers of each quote you are allowed free of charge in a 12 month period and the fee applicable for a further quote.
• 2 Retirement quotes – each additional quote fee £100
• 1 Benefit statement – each additional quote fee £100
• 1 Transfer quote – each additional quote fee £150 *
• 1 Divorce quote – each additional quote fee £150 *
*Additional charges will apply if the transfer value is over £300,000
Fixed charges that cover our administration will apply if you divorce or end your civil partnership and your pension is shared with your former spouse or civil partner see:
- I’m going through a divorce, what are my options for dealing with pension’s rights?