Home Members Investing your savings Our costs and charges explained

Our costs and charges explained

We’ve designed our charges – which are among the most cost-effective in the pensions industry – to be simple, transparent and fair.

How we calculate your charges

Monthly administration

This is the charge we make for running the Scheme and it costs you £1.75 each month (£21 a year).

Investment management

This is for investing the money in the Scheme and costs 0.3% of the value of your pension savings each year. You can see an example of how this works below.

Transaction costs

These are for buying and selling investments. We don’t charge for them separately – instead we factor them into the returns on the Scheme’s investments.

How the investment management charge works

The investment management charge is 0.3% of the value of your pension savings in a year. Here’s how this works for different amounts of pension savings.

Total pension savings before investment charge	Charge in a year	Total savings after investment charge
£500	£1.50	£498.50
£1,000	£3	£997
£2,500	£7.50	£2,492.50

The amount you pay for your pension matters a lot over a lifetime of saving. Download our costs and charges booklet for more examples of the cumulative effect of costs and charges on the value of your pension savings.

Our charging limit

We won’t deduct any administration charges if this deduction would result in your pension savings account falling below £100. This will help prevent small amounts of pension savings being eroded by administration fees.

Things to think about if you’re no longer contributing to our Scheme

Our costs and charges are the same for all members, whether you’re:

An active member, saving regularly with your employer’s help
A deferred member – you’ve stopped contributing to your pension but still have pension savings in the Scheme.

If you’re a deferred member you still pay charges and incur transaction costs. Even though you’re no longer contributing to your pension savings, your existing savings are still being invested.

No charge for transfers

We don’t charge you to transfer pension savings into or out of the Scheme.

However, if you are transferring out the pension provider you’re transferring to may make a charge. You should check this before transferring your pension savings out.

Charges made clear on your benefit statement

Your annual benefit statement shows the total amount you pay in charges each year, and explains how we take account of all charges in the pension estimate shown on your statement.

It also shows any adjustments we’ve made if we find there’s an error in the charges you’ve paid. This can be a refund or a debit.