What are the charges?

What does it cost?

The amount you will be charged depends on the investments you choose. The charges and any rebates which apply to the investment options available to you are explained in:

How to choose the right investment options for your pension guide (PDF, 334KB)
 (This document doesn't reflect any scheme rebates which apply.)

Types of charges and rebates

When you have a pension there are charges for investing in funds. These charges cover the cost of managing your investments. Charges and rebates are not guaranteed. They are regularly reviewed and may be changed in the future.

Effective total annual fund charge

This is the fund management charge (FMC), plus any additional expenses which apply, minus any scheme rebate which applies.

For example, if you invest in a fund with an FMC of 1.00%, additional expenses of 0.01% and a rebate of 0.20%, this will give an effective total annual fund charge of 0.81%.

Total annual fund charge

This is the fund management charge plus additional expenses. We only show this charge where no scheme rebate applies.

Fund management charge

Payments made to your plan are invested in funds. We apply a charge to money invested in our funds. This is known as the fund management charge (FMC) and is shown as an annual rate. However, we deduct the charge from each fund on a daily basis, which has the effect of reducing its unit price.

Even if you stop making payments into the fund, you'll still be charged the FMC because the money you've invested will still be under management.

Additional expenses

Additional expenses may be deducted from some funds. These include items such as custodian, third party administration, Trustee, registrar, auditor and regulator fees. Where a fund invests in other underlying funds, they may also include the underlying management charges.

As the additional expenses relate to expenses incurred during the fund management process, they will regularly increase and decrease as a percentage of the fund, sometimes significantly. The additional expenses figure shown is the annual rate of the charge. But where additional expenses apply, they are taken into account when the fund’s unit price is calculated each day.

All additional expenses figures are rounded to two decimal places. This means that although additional expenses may apply to some funds, they may show as 0.00%.

Scheme rebates

Lothian Pension Fund have negotiated a discount, which means that Standard Life will rebate 0.37% of the total annual fund charge by adding extra units to your fund each month.

If you leave the company, then this rebate will remain in place.

Fund switching

We won't normally make a charge for switching funds. In some limited circumstances we may charge, for example if a switch involves a fund managed by an external fund manager, and that fund manager charges us for the switch.

For more information about fund switching, contact us on 0800 634 7479. Call charges will vary.

You'll find more information about the different types of charges that may apply to The Lothian Pension Fund AVC Scheme in the Key features document (PDF, 288KB) and How to choose the right investment options for your pension guide (PDF, 334KB).

Cost of advice

If you decide to get advice from a financial adviser, they may charge for this. You’ll be able to find out more about this from them.

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.

This document explains the features of the pension product your employer has chosen.

Key features document (PDF, 288KB)

Read this member guide for more information about how pensions work and how you make payments.

Making the most of your pension  (PDF, 262KB)

Read this guide for more information on your investment options, including details about charges and fund codes.

How to choose the right investment options for your pension guide (PDF, 740KB)

This document gives you an illustration of what your pension could be worth. It may not take into account rebates that may apply to your AVC plan. You can find more info about charges and rebates on the charges page.

Key features illustration (PDF, 220KB)

Read this guide for more information on the different ways you can pay into your pension, and the tax benefits and tax charges which can apply.

Information about tax relief, limits and your pension (PDF, 190KB)

There are important differences between with profits and other types of investment. If you’re thinking of investing in with profits read the guide.

Guide to your with profits investments for pensions (PDF, 175KB)