What are the charges?

What does it cost?

When you have a pension there are charges for investing in funds. These charges cover the cost of managing your investments.

The amount you will be charged depends on the investments you choose. The charges for each investment option are explained in A guide to making the most of it (PDF, 311KB)

Charges are regularly reviewed and may be increased to reflect increases in overall costs and/or changes in the assumptions made. Any increases will be fair and reasonable.

Rebates

The trustees have negotiated a discount, which means that Standard Life will rebate 0.71% of the annual fund management charge and additional expenses by adding extra units to your fund each month.

If you leave the company, then any scheme rebates will remain.

Types of charges

Fund management charge

The fund management charge (FMC) is a charge for managing your pension and investments. The charge is built into the unit price of each fund your pension invests in and is deducted daily. Please see the the member guide  for more information about the charges that apply to you.

Even if you stop making payments into your fund, you'll still be charged the FMC because the money you've invested will still be under management. This will reduce the value of your fund over time.

Additional expenses

Additional expenses may be deducted from some funds. They include items such as Trustees’, registrars’, auditors’ and regulators’ fees. And, where a fund invests in other underlying funds, they may include their underlying management charges.

The additional expenses relate to expenses incurred during the fund management process, so they will regularly increase and decrease as a percentage of the fund, sometimes significantly. Where expenses arise within a fund they have been taken into account in the calculation of the price.

Additional expense figures may be rounded to two decimal places. An additional expense charge may apply but if it's rounded to two decimal places it may show as 0.00%.

Additional expenses are not guaranteed. They are regularly reviewed and may be changed in the future.

Fund switching

There may also be charges for switching funds.

Cost of advice

If you decide to get your own financial advice from an independent financial adviser, then there may be a charge for this. You'll be able to find out more about this from your financial adviser.

More about getting financial advice

Important documents

To help you make an informed decision we've provided you with important information that you should read. You should print or save copies of these documents for future reference.

Read this guide for more information about the Avon Rubber Retirements and Death Benefits Plan.

A guide to making the most of it (PDF, 310KB)