Costs & charges
This document will take you through the charging structure for The People’s Pension. It is in a set
format as prescribed by the Pension Charges Made Clear: Joint Industry Code of Conduct.
It will allow you to easily compare The People’s Pension with schemes from other providers.
For people, not profit
Information about costs and charges
This leaflet has information about how much is charged and the
services you and your employees get in return. This information
follows a set format presented by the ‘Pension Charges Made
Clear’ Code of Conduct*. We have presented it in a standard
way, so that you can easily compare costs and charges with
other pension providers.
There are other things you should also consider when making
a choice about the pension scheme you will use for your
employees, such as the quality of communications with your
employees and the suitability of investment options. You can
find more information about what makes a good pension
scheme on The Pensions Regulator’s website.
Summary of charges
Your employees will be charged for being members of the pension. Below is the charge
your employees will pay in our default fund. Please note that this charge may change
over time. As the employer, you do not have any charges to pay.
Standard charges
Percentage of employee’s pot taken as a charge
0.5% of pot each year
0.5%
of employee’s pot each year
Transaction costs
Costs will also be incurred when investing in different stocks and securities. These are
often called ‘transaction costs’. They are an essential part of generating investment
returns on behalf of scheme members. The chart below shows the average cost our
default fund incurred over the past three years in broker commissions and stamp duty/
transfer taxes. In addition, there is a difference between the buying and selling prices
of investments, which is called the ‘dealing spread’. Further information on how the
investment process works can be found here: http://bit.ly/1jCYj5m
Average costs of commission
Less than 0.01% of fund
Average stamp duty and/or taxes
Less than 0.05% of fund
Estimated average dealing spread
0.08% of transaction value
* http://bit.ly/ILDJRE
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What does this mean for your employees?
To see how our charges can affect your employees’ benefits please visit:
www.pensionsadvisoryservice.org.uk/pension-charges-calculator
This website provides a quick and simple-to-use calculator to show the potential effect
of pension charges on your own workforce.
You’ll need to input some basic information, such as the date you’ll be enrolling your
employees and the average salary of your workforce. Then you’ll need to enter the
standard and extra charges that will apply under your workplace pension scheme.
Our bullet points below tell you what you’ll need to put in each of these sections to
calculate the affect for The People’s Pension.
Standard charges
• Percentage of employee’s pot taken as a charge each year.
We deduct 0.5% AMC so input ‘0.50’ here.
• Percentage of employee’s pot taken as a charge each year when the
employee stops contributing.
We charge the same for all our members, so input ‘0.50’ here.
• Fixed charge per year.
We do not make or apply any fixed charges so input ‘zero’ here.
• Does a large fund discount apply?
We make the same charge regardless of the size of fund held.
Retain the default answer of ‘no’ here.
Extra charges
• Extra percentage of employee’s pot taken if employee transfers.
There is no extra charge for transfers into or out of The People’s Pension,
so input ‘zero’ here.
• Do any other charges apply?
No. The only charge in The People’s Pension is the 0.5% AMC.
The People’s Pension
One single Annual
Management Charge
(AMC) of 0.5%
100% of contributions
invested
No charge for transfers
in or out
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What services are included in the charge?
Included
in the
charge
Employee
has to
pay extra
Employer
has to
pay extra
Notes
Information and advice to you, the employer
Helping you
implement
automatic enrolment
Our file upload process painlessly assesses your workforce,
based on the information that you provide from a simple
payroll extract. If needed, it will calculate the contributions
that need to be paid. We also send all enrolment
communications to your eligible employees. All of this is
at no charge to you.
Communication to employees
Bespoke microsite
for employees
and employers
Individualised online
accounts for scheme
members
Telephone helpline
for employees
Face-to-face
help for employees
We have tailored The People’s Pension website
(www.thepeoplespension.co.uk) to our three key audiences:
employers, employees and advisers.
Every member is able to use our secure website to view and
manage their account online. They can also update their
personal details.
Our UK based call centre is open Monday to Friday
(including bank holidays) from 8.30am to 8.00pm,
and 9.00am to 1.00pm at weekends.
We have a range of communication options ,including
animated presentations and posters, that will enable you
to give your employees a clear overview of how automatic
enrolment will affect them.
Not offered
Not offered
Setting up and running the Scheme
Scheme-specific
governance
framework
Each employer has their own section of The People’s Pension,
which can accommodate as many different categories of
member as required. All sections of the Scheme are overseen
by the Trustee of The People’s Pension.
We have proven expertise in dealing with complex payroll
situations, small pots and employers both large and small,
from large multi-nationals to employers with less than 50
employees. Our teams are involved in every aspect of our
offering, providing support at every stage.
We will deal with all opt-out requests, reporting back any
changes to you daily. As well as assessing your workforce
and calculating contributions, our online services provide
you with a full audit history of every contribution made,
membership periods and opt-out history.
Scheme-specific
administration team
Automatic enrolment
record-keeping and
support compliance
service
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Included
in the
charge
Employee
has to
pay extra
Employer
has to
pay extra
Notes
Managing your employee’s investments
Monitoring suitability
of the default fund
As part of its ongoing governance, our independent Trustee,
in conjunction with external investment consultants, regularly
monitors the suitability and performance of all of the available
funds, including the default fund.
Availability of specialist funds upon request
Ethical funds
We offer an ethical fund which tracks the FTSE4 Good Global
Equity Index. The Fund managers are signatory to the United
Nations Principles of Responsible Investment (UNPRI).
The Fund is managed by HSBC Global Asset Management.
Shariah-compliant
funds
Costs of one-off services (per member)
Splitting a pension
on divorce
Transfers in
and out
£500
£0
Supporting employees at retirement
Adviser to help
employees find the
best annuity
Selected panel of
annuity companies
Please see below.
Not offered
We have an exclusive arrangement with Partnership
Assurance to provide an annuity offering, alongside the
Open Market Option.
In addition to offering competitive rates, it is important
that our partner can provide annuities for members with very
small pots, as these aren’t always easily obtainable in the
Open Market. Nearly 60% of those who bought annuities
from Partnership have benefitted from enhanced rates.
The annuity market is constantly changing and, with this in
mind, we are currently reviewing our annuity proposition to
give members access to an even wider selection of retirement
income options.
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Why should you choose us?
We are one of the UK’s leading providers of workplace pensions.
Taking the hassle away
Our employer assistance tool provides full compliance support for employers, including the
option of sending communications direct to employees.
Support at every stage
From pre-assessment through to implementation, we are involved in every aspect of our
employer and employee service offering. We have award winning UK based, employer
and employee contact centres.
Transparency of charges
The People’s Pension has one single Annual Management Charge of 0.5%. This is
equivalent to a total expense ratio and is inclusive of all operating costs.
Concise investment choice
Too much choice often confuses employees. We offer simple investment choices: three
risk-based investment profiles (which lifestyle over 15 years) or the opportunity to self-select
from seven investment funds.
Inspiring communications
We believe that design simplicity is essential for meeting the communication and
engagement challenges of automatic enrolment. An example is our short animated
video, which brings automatic enrolment to life through engaging graphics and a concise
commentary.
To help workers whose first language is not English, we provide key pages of The People’s
Pension website in 55 languages.
In safe hands
With 30 years of pension scheme experience, we have unrivalled expertise in delivering
pensions to low-to-moderate earning and transient workers.
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For people, not profit
B&CE is a not-for-profit organisation, which operates for the benefit of its
members and their dependants. Established in 1942 and founded in
construction, B&CE’s current offerings include a workplace pension,
employee accident cover, employee life cover and employee healthcare.
Today it manages assets of £1.9 billion, with 2 million members and provides
financial benefits to over 590,000 active individuals on behalf of over 6,700
corporate accounts. (Information correct as of 28 February 2014)
For over 30 years, B&CE has been providing workplace pensions to
employers with transient, low to moderate earning workforces, both large
and small. B&CE has been operating a form of automatic enrolment for over
ten years through its stakeholder product. In November 2011 B&CE
announced details of The People’s Pension, as an additional product to
assist employers in complying with their automatic enrolment duties.
The People’s Pension, a Master Trust, is a multi-employer scheme with
independent trustees. It is a hassle-free, flexible and portable workplace
pension designed for people, not profit and is suitable for any organisation,
large or small, in any sector.
B&CE, as the provider of The People’s Pension, was awarded Auto-Enrolment
Provider of the Year at the UK Pensions Awards 2013 and best ‘DC Master
Trust’ at the Pension and Investment Provider Awards 2013.
The People’s Pension is the choice for any organisation, large or small,
in any sector. It’s for the people, for life.
To find out more, or to register:
www.thepeoplespension.co.uk
[email protected]
Or call us on:
Existing clients: 01293 586666
Advisers: 01293 586637
New enquiries: 0800 612 8080
This information in this document is correct as at March 2014 and may be subject to change.
Registered in England No. 2207140. To help us improve our service, we may record your call.
B&CE Financial Services Limited is Authorised and regulated by the Financial Conduct Authority.
Ref: 122787. The Company is a distributor of, and an administrator for, The People’s Pension
and the Employee Life Cover Scheme which are occupational pension schemes to which
different law and regulation applies. Further details, can be found on our website
www.bandce.co.uk/legal
7
3573/0314
B & C E Financial Services Limited
Manor Royal, Crawley, West Sussex, RH10 9QP.