• The Pensions Trust announces new charging structure: 0.45% AMC* with no annual charge across majority of schemes
• JLT selected as administrative provider
• Comprehensive auto-enrolment tool to help employers through the transition
The Pensions Trust, one of the leading occupational pension providers in the UK for the third sector, today announces details of the charging structure for its new auto-enrolment offering ‘SmarterPensions’, set to launch on 4 March 2013.
SmarterPensions, The Pensions Trust’s new defined contribution (DC) concept will provide the platform for its ‘qualifying workplace pension schemes’ offering members exceptional value, with the Annual Management Charge (AMC) across the majority of the fund range set at 0.45% - one of the best value options on the market. The offering will be fully auto-enrolment compliant, providing a free auto-enrolment service to participating employers.
Smarter Pricing
The Pensions Trust continues to evaluate its pricing structure to ensure the competitiveness of the SmarterPensions offering. In November 2012, The Pensions Trust announced that employers would no longer be charged an annual fee for its Flexible Retirement Plan (FRP), while also reducing the AMC to 0.5%. The launch of SmarterPensions in March 2013 will see this AMC reduce further to 0.45%, while the AMC of the Ethical Fund will reduce by 0.15% to 0.6%. The Pensions Trust’s other schemes: Growth Plan Series 4, the Social Housing Pension Scheme DC structure (SHPS DC) and the CARE Scheme DC structure (CARE DC) will be set at 0.45% from launch, with significant rebates on funds anticipated within two to three years. The Pensions Trust also today announces the selection of JLT as administrative provider to SmarterPensions.
Smarter Investments
The Pensions Trust recently announced that the SmarterPensions schemes will use AllianceBernstein’s Target Date Funds strategy as a default to ensure a more tailored investment approach for members, aimed towards their individual retirement date. As an alternative to the Target Date Funds default, members will be offered the opportunity to tailor their investment choices through a self select mechanism, meaning that members can choose a retirement solution that is truly bespoke.
Stephen Nichols, Chief Executive of The Pensions Trust, said: “Our aim in creating SmarterPensions has always been to provide our members with the best possible service for them at the lowest possible cost. Our connections with JLT and AllianceBernstein will enable us to fulfil this promise whilst ensuring that this service is truly tailored to the third sector. We believe that SmarterPensions will offer a hugely competitive offering that will drive up 21st Century DC solutions.”
A Smarter Experience
Members of SmarterPensions will benefit from a user-friendly live online service in operation 24 hours a day, where they will have access to high quality scheme information including daily unit pricing, fund values, benefit statements and real-time quotations. Members will be able to check fund balances and access interactive retirement modelling tools, forecasting values at retirement with the ability to review the effect of changing retirement age, fund choice and contribution levels. Members will also have direct access to the SmarterPensions administration team during normal office hours. SmarterPensions will also provide a free annuity service, accessed via a separate password-protected site with an annuity calculator, and the option for members to complete medical questions to benefit from an enhanced annuity.
Employers will also have access to a new and enhanced eBusiness system for submitting contributions and data, as well as a comprehensive auto-enrolment tool to help employers administer the transition.
Stephen Nichols continued: “Preparing your organisation for auto-enrolment can seem a daunting task, but at The Pensions Trust we are dedicated to offering all the help and support possible to guide our employers through the necessary steps to help make the process as painless as possible. Our online service will give members and employers access to all the tools they need to make auto-enrolment work for them in the simplest and easiest way possible.”
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