Member borne charges and transaction costs

• Example member 1: the youngest member (age 43) who is therefore 22 years from their retirement age of 65 with a current fund of £1,070;
• Example member 2: a member of average age (age 58) who is therefore 7 years from their retirement age of 65 with a current fund of £6,120.

The effect of costs and charges on the Cash Lifestyle Strategy (which is the strategy within which members are invested unless they self-selected investment funds), the Global Real Estate Equity Index Fund (the fund with the highest costs and charges) and the Cash Fund (the fund with the lowest level of costs and charges) have been illustrated.

The examples below illustrate the effect of the costs and charges on example members’ projected retirement pots over time.

Example member 1:

For the youngest member, the estimated impact of costs and charges on the accumulated fund values is shown in the table below.

Example member 2:

For the member of average age, the estimated impact of costs and charges on the accumulated fund values is shown in the table below.

For the Prudential and Phoenix Life arrangements, we have chosen one representative member (example member 3).  This is the youngest member (age 44) who is therefore 21 years from their retirement age of 65 with a current fund of £850.

The effect of costs and charges on the Phoenix Life and Prudential With Profits Funds have been illustrated, as these were the only funds held in these arrangements at the end of the Scheme Year.

Example member 3:

For the example member in the Phoenix Life and Prudential arrangements, the estimated impact of costs and charges on the accumulated fund values is shown in the table below. 

• The illustrations assume no further contributions are paid;

• Representative members are based upon the Scheme’s membership as at 31 March 2025 for the L&G and Phoenix Life arrangements, and 1 April 2024 for the Prudential Series 3 policies and 1 April 2023 for the Prudential Series 1 policies;

   

• The illustrations are shown in today's terms, and do not need to be reduced further for the effect of inflation, which is assumed to be 2.5% p.a.;

   

• Transaction costs have been averaged over up to five years in line with statutory guidance to reduce the level of volatility. A floor of 0.0% p.a. has been used for transaction costs if these were negative in any year so as not to potentially understate the effect of charges on fund values over time;

   

• Growth rates for the L&G and Prudential funds are those used by the providers in members’ annual benefit statements. Phoenix Life has not confirmed the growth rate it uses in members’ annual benefit statements, so we have used the same as that used by Prudential for consistency (growth rates are based upon past volatility of the funds, not expected future growth rates); and

   

• The projected growth rates and costs and charges assumed in the illustrations are as follows: