The People's Pension The complete workplace pension
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Suitability Report
The People’s Pension
The complete
workplace pension
The People’s Pension is a workplace pension scheme designed to support businesses of all sizes, in all
sectors. Whether employers are looking to set up a workplace pension scheme for auto-enrolment or
move their existing scheme, The People’s Pension is a simple, hassle-free and cost-effective solution.
It’s the UK’s largest private sector master trust workplace pension scheme. So far, tens of thousands
of employers have chosen us, with millions of members.
Why choose us?
Strong governance All the support advisers, A flexible and supportive
The People’s Pension is run by an
employers and employees approach
independent trustee. They’re responsible need The People’s Pension is a quality
for making sure that the scheme is run workplace pension scheme that can be
We provide great value, simple and easy
in the best interests of its members, used:
to understand products and services,
according to scheme rules (and the law).
supported by award-winning customer • for auto-enrolment
We’re on The Pensions Regulator’s list of support and service. • as the only workplace pension scheme
master trusts that have met independent • alongside another scheme, for specific
assurance standards for governance and How we support you: workers
administration. The scheme was the first
• Simple online sign-up • alongside another scheme, for
master trust to achieve the first level of
• Systems that work with all leading additional contributions
voluntary assurance, in accordance with
the Institute of Chartered Accountants in payroll providers • to replace an existing scheme or
England and Wales’ assurance framework • Quick, easy and secure data transfer multiple schemes.
for master trusts. This shows we’ve got • Award-winning service and support
the right processes in place. And having
since achieved the second level, we’ve • A friendly UK-based contact centre
been able to demonstrate that they work • Clear communications, including
too. What’s more, we’ve been granted templates, guides, and a simple
master trust authorisation – recognised toolkit to help employers talk to their
and approved by The Pensions Regulator employees about their pension
as a master trust that’s run properly and
governed to offer better financial stability
and protection to pension savers.
The People’s Pension has a Defaqto 5 Star
Rating for Workplace Pensions.
For people, not profit
How we support you
Re-enrolment Contributions Our relief at source arrangement (our
default tax relief method) means that
Around every 3 years, the government The People’s Pension is a quality members’ contributions are paid to us
wants to put certain employees who have workplace pension scheme that can be from their net pay, after tax is deducted
ceased membership back into a pension used to help an employer meet their and we will automatically claim basic rate
scheme. It’s a process called auto-enrolment duties as either their main tax relief from the government on their
re-enrolment. or secondary pension scheme. behalf. This arrangement can be a big
financial advantage to members who pay
The People’s Pension can help – we’ll: Whether The People’s Pension is used as little or no income tax.
• send reminders a workplace pension scheme, or purely
• send new joiner letters
as an auto-enrolment scheme, Additional contributions
the contribution basis can be adapted
• and help employers to re-declare to suit employers. Members can pay more into their pension
their compliance. with The People’s Pension if they choose
The People’s Pension has no minimum to. They can do this either by asking their
Transferring in – employers or maximum contribution limits (beyond employer to increase their payments via
the legal minimums for auto-enrolment payroll, or by setting up a Direct Debit
Our simple process and dedicated of course). payment from their own bank account.
support team can help employers
transfer their pension schemes with other Tax relief High-quality customer service
providers into The People’s Pension.
We support two tax relief methods; Our award-winning UK-based call centre
Transferring in – members ‘net pay arrangement’ and ‘relief at is on hand to help. Our teams are friendly
source’. So you can choose the best way and knowledgeable, with calls answered
Members can transfer their pension pots for your employees to get tax relief on quickly by a real person.
to The People’s Pension at no charge from their contributions.
us, helping members keep track of their
money and even potentially save a little Our net pay arrangement allows
in management charges. Of course, they employers to collect and pay us
can also transfer their pension pots away members’ pension contributions, before
from us too. We don’t charge for this. tax is deducted. This means members
receive tax relief at the highest rate of
tax they pay.
Charges
Members • up to £6,000 no rebate is given The annual management charge covers
• over £6,000 and up to £10,000 the cost of investing members’ pension
Our annual management charge is made we give back 0.1%* savings and running The People’s
up of 3 elements: Pension. Find out more at
• over £10,000 and up to £25,000
www.thepeoplespension.co.uk/charge
1. an ongoing management charge we give back 0.2%
applied on a daily basis • over £25,000 and up to £50,000 Employers
we give back 0.25%
2. a potential rebate of the charge – the There’s a one-off set-up charge for
• over £50,000 we give back 0.3%.
level of which depends on how much employers signing up to The People’s
is in the member’s pot This all happens automatically and
Pension:
members will be able to see the rebate in
3. an annual charge. their Online Account and annual statement. • £500 + VAT if the employer signs up
directly with us
1. The management charge If they take their money out, future
rebates will be worked out on the value of or
Members pay a 0.5% management any remaining savings. • £300 + VAT if the employer signs
charge each year. To put it another way, up through a financial adviser,
we charge them just 50 pence a year for To qualify for a rebate, their money must accountant, bookkeeper or payroll
every £100 they have in their pension pot. be invested by the first day of a rebate professional registered with us.
period. So, when they first join, they won’t
2. What they get back as a rebate receive a rebate at the end of the first Either way, employers will get all the
rebate period. ongoing support they need for that one-
To help members save more, typically
off set-up charge. There are no monthly
they’ll get a rebate on their management 3. The annual charge or other hidden charges.
charge of between 0.1% and 0.3%,
depending on how much is in their pot. Members also pay an annual charge of
For the part of their savings: £2.50 deducted during the scheme year
(which runs from 1 April to 31 March), if
they have investments with us as of
1 April.
*Minimum rebate payable is 1 pence.Investment choice • Members can invest their money in
one of these simple investment profiles
Investment funds
or choose from a range of funds. Members of The People’s Pension can
Key points decide for themselves where their
• Each profile gradually and pension savings are invested by choosing
• The People’s Pension automatically automatically moves members’ from our investment funds (we call this
invests members’ money in our pension savings into lower-risk self-select).
‘balanced’ profile (our default profile), investments as they near retirement.
unless they tell us otherwise. They can specify what percentage they
• Shariah and Ethical funds are want to put into each fund (with the
• Our profiles are: available. exception of the Shariah Fund, which has
• Balanced: For members who are to be ‘all in’).
prepared to accept some risk, • Our investment approach is focused
but would also like some of their on addressing the evolving needs The funds are:
investments to be secure. There’s of members to deliver the strongest
• Ethical Fund
the potential for long-term growth possible outcome for them at
retirement. • Shariah Fund
with some security.
• Global Investments
• Cautious: For members who are
Investment profiles (up to 100% shares) Fund
prepared to accept some degree of
risk, but look for investments with • Global Investments
When a member selects one of the
lower risk and volatility. There’s the (up to 85% shares) Fund
investment profiles, The People’s Pension
potential for moderate growth in the uses what is known as a ‘glidepath’ to • Global Investments
long term. automatically move their pension savings (up to 60% shares) Fund
• Adventurous: For members who into lower-risk investments as they get • Annuity Fund
are prepared to accept more risk for closer to retirement. This glidepath • Pre-Retirement Fund
the potential of more growth, and normally begins 15 years before their
• Cash Fund
are comfortable with investments selected retirement age.
with higher risk and volatility. There’s If members choose their funds
the potential to maximise growth in This reflects a longer de-risking period
themselves, their money won’t
the long term. than most pension providers in the
automatically move into lower-risk
market. Experience tells us that this is
investments as they approach retirement
right because many of our members take
(the glidepath). So it will be up to them to
their pension earlier than their selected
regularly review their choice.
retirement age.
Members are able to switch funds, or
choose an investment profile instead, at
any time. They can do this as many times
as they like, free of charge, in their Online
Account.
Choices at retirement
Following the pension freedoms introduced by the government in 2015, members – from age 55 onwards (or earlier due to ill health)
– can access their pension savings from The People’s Pension in several ways. Members can do this in their Online Account. To see
how we explain retirement choices to our members, visit
www.thepeoplespension.co.uk/how-you-can-take-your-pension-money/.
Taking a pension pot of £10,000 or less in Members with £10,000 or less in their pension pot, may be able to take all their money in one go.
one go (as a small pot lump sum) Normally when they do, 25% of the payment is tax free. There is no limit to the number of small pot lump
sums that a member can take – as long as they are from unconnected occupational pension schemes
and they meet HM Revenue & Customs’ (HMRC) rules around small pot lump sums. The People’s Pension
is an occupational pension.
Taking a pension pot of more than HMRC calls this an ‘uncrystallised funds pension lump sum’ or ‘UFPLS’. Our members can take this option
£10,000 in one go (as a single lump sum) as long as they have more than £10,000 in their pot with us. Normally 25% of the payment is tax free.
Taking a pension pot a bit at a time and When taking a number of lump sums in this way, 25% of each lump sum is usually tax free. Our
taking the tax-free cash gradually (also members can take this option as long as they have more than £10,000 in their pot with us. And they
known as ‘UFPLS’) must take a minimum of £2,000 each time they request a lump sum.
Taking a pension pot a bit at a time and With this option, our members can usually take their 25% tax-free cash at the beginning, and then pay
taking the tax-free cash upfront (also tax on the full amount of each lump sum they take after that. Members can take this option as long as
known as ‘flexi-access drawdown’) they have more than £10,000 in their pot with us. And they must take a minimum of £2,000 each time
they request a lump sum.
Buying a guaranteed income for life We don’t offer an annuity product ourselves, but members can move their money into our Annuity Fund if
or for a set period (also known as an they’re planning to buy a guaranteed income with their pension savings. Then, when they’re ready, they
‘annuity’) can transfer out to the annuity provider of their choice.
Transferring out Members can apply to transfer their pension savings to a different pension company at any time. We
don’t charge members to transfer their pension savings out of The People’s Pension.Additional guidance and advice options
For members, choosing what to do with them. We always suggest they speak to They can find out more about where
their pension savings is a big decision. an independent financial adviser first of to go for guidance and advice at
They may need some help – either in the all, but we know that not everyone can www.thepeoplespension.co.uk/
form of guidance or independent financial access this valuable resource. guidance-and-advice-for-members/.
advice. Even if they’ve done some of their
own research (always a good thing) and So, The People’s Pension has teamed
spoken to Pension Wise, they may still up with LV= to offer additional guidance
feel unsure of which option is best for and advice options for our members
approaching retirement.
Administration and service levels
B&CE, provider of The People’s Pension We’ve won awards for our customer
has over 37 years’ experience of delivering service and support, and for the quality of
high-quality administration to pension The People’s Pension. Since 2019 we’ve:
customers. That not-for-profit status means • Been awarded a Defaqto 5 Star Rating
that we don’t have any shareholders, so for Workplace Pension 2020.
our customers really do come first.
• Won Multi-employer DC provider –
B&CE has been providing financial benefits Pension & Investment Provider Awards
to the construction sector since 1942. 2019.
Our values (Creating Simplicity, Showing • Won Master Trust Offering of the Year –
Compassion and Keeping Promises) drive Pensions Age Awards 2019.
everything we do. • Won Best Master Trust at the Corporate
Adviser Awards 2019.
Our bespoke system was developed and
built in-house to be flexible and adaptable.
We currently manage assets of more than
£8.3 billion for over 4.9 million members
within The People’s Pension.
For more information on The People’s Pension:
www.thepeoplespension.co.uk 01293 586643 rrm@thepeoplespension.co.uk
BR TPP 0067.0520
B & C E Financial Services Limited
Manor Royal, Crawley, West Sussex, RH10 9QP. Tel 0300 2000 555 Fax 01293 586801.
Registered in England and Wales No. 2207140. To help improve our service we may record your call.
B & C E Financial Services Limited is authorised and regulated by the Financial Conduct Authority
Ref: 122787. It acts as a distributor of, and an administrator for, pensions (including The People’s
Pension Scheme), accident and death insurance and a range of financial welfare products.You can also read
