We’ve recently completed a value for money review of our workplace pensions and as a result we’re making some improvements to versions 1-4 of our Talisman Group Pension Scheme plans (GPS).
All these changes will reduce or remove current or potential future charges to both current members and those who’ve left service, but retained a Talisman continuation plan (CPS).
We’ll shortly be writing to employers of v1-4 GPS schemes to notify them of the actions we’ve taken to deliver greater value for money to our workplace pension customers and how it affects them. We’ll also we writing to Talisman GPS / CPS v1-4 members and advisers.
Here’s a summary of the changes applying to versions 1-4 of Talisman GPS/CPS.
|Improvement||Effective date||GPS / CPS version|
|1.Removing policy fees for paid up plans 1||1 April 2016|
|2.Removing exit charges on members leaving service||1 April 2016|
|3.Stopping initial commission charges once the cost of commission has been recovered||16 Sept 2016|
|4.Amending the exit charges applying to recover outstanding initial commission||16 Sept 2016|
|5.Extending the maximum loyalty bonus for plans with regular contributions||16 Sept 2016|
|6.Changing the basis of exit charges to take into account the term the plan is held||16 Sept 2016|
1 The ‘policy fee’ is sometimes referred to as ‘member charge’ in documentation.
A detailed explanation of these changes is contained in the attached factsheet.
No changes are being made to Talisman GPS/CPS versions 5 & 6. These are relatively modern products, launched in the run up to stakeholder pensions and don’t have policy fees, loyalty bonuses or exit penalties. Therefore the changes being made to versions 1-4 aren’t relevant to versions 5 & 6.
Having examined the charges for workplace pension customers carefully, we found that in certain older products that are no longer marketed to employers, we could improve the value for money by making a number of changes.
We’ve worked with our new Independent Governance Committee (IGC)2 to agree a plan for delivering further value to members of these older schemes by reducing and removing some charges from these products.
The IGC has assessed the value for money we provide on all our workplace pensions and has concluded that overall Royal London is delivering value for money to its customers through its workplace pensions.
2 IGCs represent the interests of scheme members in assessing the value for money of workplace pension schemes, challenging providers to make changes if needed. Firms that operate workplace pension schemes are required by the FCA (as of 6 April 2015) to set up an IGC, with a clear mandate to act independently of the firm.
You can find out more about the IGC and governance at royallondon.com/IGC
|Timeline for the mailing|
|8 March||Adviser mailing|
|11 March||Employer mailing|
|15-23 March||Customer mailing|
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