What are the charges?

What does it cost?

When you have a pension plan 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 which apply to each investment option are explained in the How to choose the right investment options for your pension guide (PDF, 896KB).

Charges and rebates 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.

Scheme rebates

Deutsche Bank has negotiated a discount, which means that Standard Life will rebate 0.70% of your fund value by adding extra units to your fund each month. There's an example of how this works below.

Types of charges

Fund management charge

The fund management charge (FMC) is a charge for managing your pension plan and investments. The charge is built into the unit price of each fund you invest in and is deducted daily. Please see How to choose the right investment options for your pension guide (PDF, 896KB) for more details about the FMC on the available funds. But remember, this document won't reflect any scheme rebates that may apply.

Even if you stop making payments into your plan, 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. They include items such as custodian, third party administration, trustee, registrar, auditor and regulator 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.

Scheme rebates

Standard Life has agreed with Deutsche Bank to provide enhanced terms for you.  This gives you an annual rebate of 0.70% of the amount that is invested in each fund.

Your rebate is given to you as additional units in the fund each month.  This reduces the effect of the fund management charge (FMC) and additional expenses.  You will find out more information about how the rebate is applied in the DB Flexible Retirement Plan Handbook.

Effective total annual fund charge

This is the FMC, plus any additional expenses which apply, minus any scheme rebate which applies.

Fund management charge: 1.00% 
 
Plus additional expenses 0.01% 
 
Minus rebate 0.70% 
 
Effective total annual fund charge  0.31% 

The FMC and additional expenses are deducted daily, while the rebate is deducted monthly.  So over the longer term, the effective total annual fund charge will be close to the sum of the FMC and additional expenses, minus the scheme rebate.

However, it will be affected by factors such as:

  • the period it has been measured over
  • any single payments and transfer payments you make
  • changes in the timing of your regular contributions
  • daily changes in fund values

Charges, rebates and additional expenses are not guaranteed.  They are regularly reviewed and may be changed in the future.  The charges, additional expenses and rebates shown here are correct as at April 2022.

Fund switching

There may also be charges 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.

All charges are regularly reviewed and may be changed in the future.

Cost of advice

If you decide to get 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.

This form is used to request for the scheme to pay the Annual Allowance Charge.

Annual Allowance Charge form (PDF, 100kb)

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

Plan summary document (PDF, 70kb)

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

Key features document (PDF, 288kb)

This document provides you with more information on how you can take money from your pension flexibly. For more information on the other options available please see the key features document above.

How Drawdown Works PDF, 211KB

Read this guide for more information on choosing your investment options if you decide to take money from your pension flexibly.

Choosing investment options for a flexible income PDF, 119KB

This document gives you an illustration of what your pension could be worth.

Key features illustration (PDF, 165kb)

This document gives you an illustration of what your one-off payment could be worth when you retire. Read this if you are thinking about participating in the DB FRP Bonus Waiver offer.

DB FRP Key features illustration - Single Transfer (PDF, 191KB)

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 (PDF, 896kb)

Read this guide for more information about how the DB Flexible Retirement Plan works.

DB Flexible Retirement Plan Handbook (PDF, 541kb)

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, 99KB)

Use this form to nominate any death benefits under the DB Flexible Retirement Plan.

Instruction for payment of death benefits (PDF, 77kb)

Use this form if you'd like to switch from the DB FRP into a Group Self-Invested Personal Pension Plan (GSIPP). More about GSIPP.

Switch form (PDF, 92KB)

Use this form to nominate any death benefits under the DB Group SIPP.

GSIPP - instruction for payment of death benefits (PDF, 77kb)