Final salary common questions
Do we accept final salary schemes?
Yes, although we do vet prospective schemes. This process is handled initially by our regional sales offices and Sales Actuaries. You should contact a financial adviser for further details.
Do we only take new schemes, or will we take over existing ones?
We're happy to take both. However, we anticipate that most of the schemes we're asked to consider will already be established.
Why do we want to take final salary schemes when our competitors are getting out of them?
As specialists in pensions, we believe we can provide expert support at competitive prices.
If you are involved in a final salary scheme, you may know that increasing legislative and financial pressures have forced employers and trustees to make some difficult decisions. Many schemes have been changed in structure or closed to new entrants.
In all cases, it's essential that the investments and management costs are properly controlled throughout the future of the scheme. We have the expertise and the specialist systems to do that.
Will we accept any scheme that applies?
No. We'll assess each application and decide whether it is an appropriate scheme for us to take on.
Do we pay commission to financial advisers?
Yes. We'll either pay commission as a one-off deduction from the fund or by deducting units. We'll always inform the scheme's trustees in advance about how we'll pay commission.
What charges do we apply?
We apply a yearly management charge of 0.6%. We set fees for actuarial and documentation services when we accept a scheme These depend on how complex the scheme's benefit structure is and the quality of the existing documentation. We'll apply these charges yearly and review them every five years.
What services do we provide?
We can offer different levels of service depending on your requirements:
- investment of pension contributions only
- investment and scheme administration
- investment, scheme administration and actuarial services (in other words, checking that the scheme has adequate funds)
- investment, scheme administration and drafting the trust deed and rules
- investment, scheme administration, actuarial services and drafting the trust deed and rules
Can we provide administration services only?
Normally, we don't. However, together with our sister company AEGON HS Admin, we may be able to help in some situations. You should contact a financial adviser for further details.
Can we take over your existing trust deed and rules?
Yes. We always look at these in detail when we are considering whether to accept a scheme. When tax and regulations change, as they have done recently with the Pensions Act 2004 and Finance Act 2004, we'll advise you how your existing trust deed and rules will have to change, and how they can be brought closer to our standard versions.
