We’re changing some of the adviser remuneration options on your workplace pension scheme.
We’ve recently written to you following a review we’ve carried out with our Independent Governance Committee to make sure we’re continuing to offer value for money.
When you set up your scheme, you agreed with your adviser that we’d pay them a remuneration payment when an existing member made an ad hoc increase to their plan or if someone new joined your scheme*. From 1 December 2021, we’re no longer going to be making these remuneration payments to your adviser.
On this page you’ll find some Q&As which will help with any immediate questions you have, along with a copy of letter we’ve sent.
* We’ve already closed our Talisman Group Personal Pension scheme to new joiners, so if this is your scheme type, you’ll only be affected by the ad-hoc increases.
An ad-hoc increase can be in the form of a new single, transfer, regular payment, or where a member has elected to increase their existing regular payment, for example, the regular payment is increasing from £100 to £150 per month, no remuneration will be paid on the £50 increase.
We’ll continue to pay your adviser when there’s an automatic increase applied to the member’s plan. This can be part of a contractual increase, either through a salary increase or as a fixed percentage, or an increase by the Retail Price Index (RPI).
Due to the version of workplace pension scheme you have, there are no alternative adviser remuneration arrangements available.
Yes, we’re not removing any adviser details from the scheme, so they’ll remain on our records for your scheme until we’re told otherwise.
The Annual Management Charge for new entrants and ad-hoc payments won’t include any remuneration charge, so the charge to the member will be reduced.
When you set up your scheme, you’ll have completed an employer application form which will have detailed the agreed remuneration that we deduct from the member’s plans and pass onto your adviser.
The Committee’s principle function is to act in the interests of Royal London’s workplace pension customers and pathway investors. Their job is to discern the value for money (VFM) we are providing to these customers and challenge us where they believe VFM needs to improve. There’s more information here.