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The table below shows you the charges and transaction costs associated with each of the Scheme’s available Defined Contribution funds.

We’ve also included a couple of examples of what your fund might look like once these charges and costs have been taken into account.

Provider/Fund TER (%) Transaction costs (%)
L&G
Cash Lifestyle Strategy 0.43 – 0.47
(depending upon term to retirement)
0.00 - 0.08
(depending upon term to retirement)
All World Equity Index 0.46 0.00
Multi-Asset 0.47 0.00
Cash 0.43 0.08
Phoenix Life
Deposit Administration Not applicable2 Not available
Prudential
With Profits Cash Accumulation 1.073 0.10

 

Source: Providers

1 Phoenix Life has confirmed there are no explicit charges on the Phoenix Life Deposit Administration Fund.  

2 For the Prudential With Profits Fund, the costs of running the Fund are taken into account when the bonus rate is declared.  Prudential currently estimates running costs to be 1.07% p.a., however the charge is not guaranteed at this level, and may change in the future.

Example illustrations of the impact of fund charges and costs on member's DC fund values

Provided below are some example illustrations of the impact DC provider’s charges and costs have, in practice, upon the DC fund value for a typical member of the Scheme.

The Trustee has not provided illustrations for the Phoenix Life Deposit Administration Fund or the Prudential With Profits Fund because there is only one member invested in each of these funds and therefore their annual benefit statement provides a more accurate projection of future benefits. 

  • Example member 1: the youngest member (age 43) who is therefore 22 years from their retirement age of 65 with a current fund of £1,860; and
  • Example member 2: a member of average age (age 60) who is therefore 5 years from their retirement age of 65 with a current fund of £3,800.

In accordance with the guidance, we have illustrated 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 Cash Fund (which was the L&G fund with the highest costs and charges over the Scheme Year) and the All World Equity Fund (which was the L&G fund with the lowest costs and charges over the Scheme Year).


The examples below illustrate the effect of the costs and charges at different ages on these example members’ projected retirement pots.

 

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. 

Cash Lifestyle Strategy

Years to retirement Fund value before charges Fund value after charges Impact of charges
22 £1,860 £1,860 £0
20 £1,910 £1,900 £10
15 £2,060 £1,990 £70
10 £2,210 £2,090 £120
5 £2,380 £2,200 £180
0 £2,510 £2,260 £250

Cash Fund (highest costs and charges)

Years to retirement Fund value before charges Fund value after charges Impact of charges
23 £1,860 £1,860 £0
20 £1,840 £1,830 £10
15 £1,800 £1,750 £50
10 £1,750 £1,670 £80
5 £1,710 £1,590 £120
0 £1,670 £1,520 £150

All World Equity Index Fund (lowest costs and charges)

Years to retirement Fund value before charges Fund value after charges Impact of charges
23 £1,860 £1,860 £0
20 £1,990 £1,970 £20
15 £2,350 £2,280 £70
10 £2,780 £2,640 £140
5 £3,290 £3,060 £230
0 £3,890 £3,540 £350

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.

Cash Lifestyle Strategy

Years to retirement Fund value before charges Fund value after charges Impact of charges
5 £3,800 £3,800 £0
0 £4,000 £3,910 £90

Cash Fund (highest costs and charges)

Years to retirement Fund value before charges Fund value after charges Impact of charges
5 £3,800 £3,800 £0
0 £3,710 £3,630 £80

All World Equity Index Fund (lowest costs and charges)

Years to retirement Fund value before charges Fund value after charges Impact of charges
5 £3,800 £3,800 £0
0 £4,490 £4,400 £90

  • Projected fund values shown are estimates and are not guaranteed (they have been rounded to the nearest £10); 
  • Representative members are based upon the Scheme’s membership as at 5 April 2025;
  • The illustrations assume no further contributions are paid;
  • 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 a three-year period to reduce the level of volatility and a floor of 0.0% p.a. has been used for transaction costs if these were negative so as not to potentially understate the effect of charges on fund values over time;
  • Growth rates are consistent with those used by the providers in members’ annual benefit statements, (so they 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:
Strategy / Fund Growth rate Costs and charges
L&G Cash Lifestyle Strategy 2% – 4% p.a.
(depending upon term to retirement)
0.43% – 0.49% p.a.
(depending upon term to retirement)
L&G Cash Fund 2% p.a. 0.43% p.a.
L&G World Equity Index Fund 6% p.a. 0.46% p.a.
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Value for member assessment

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Member borne charges and transaction costs

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Default fund arrangements

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