Value for money review - Crest

21 March 2016
We’ll shortly we writing to Crest trustees and their advisers to confirm the outcome of our value for money review of Crest Secure and Crest Growth plans.

This may generate some queries from trustees looking to you for support to help them meet their responsibilities.

This mailing follows on from our mailing in December 2015 to remind trustees of their new legal responsibilities and give them more information to allow them to take action. We also flagged up the new legislation to trustees as part of the pensions flexibility mailing in June 2015.

Timeline for the mailing

Mon 21 March

Adviser mailing 

Tue 22 March

Trustee mailing 

Value for money review

There’s a new emphasis on trustees -assessing the value of costs and charges borne by scheme members relative to the benefits they receive. To help trustees with this we reviewed our workplace pensions to assess our own view of the value for money we provide. Trustees may wish to take account of this when forming their own views.

We confirmed the outcome of our value for money review of Retirement Solutions schemes in December. And we’ve now completed the value for money review for Crest Secure and Crest Growth plans. 

How Crest Secure delivers value for money

  1. It provides guaranteed returns for the members through declared growth rates.
  2. Although this is a low risk fund, the growth rates declared have consistently been higher than inflation, so they’re delivering real returns to the members.
  3. Members are not charged extra if they stop contributing.
  4. There are no exit charges for members accessing their pensions on retirement.  However, there may be an exit charge if an individual transfers out of the Crest Secure Plan while still in service, if the trustees decide to move the whole plan to another pension product, or if the trustees decide to wind up the scheme.

 

How Crest Growth delivers value for money

  1. It has provided good investment returns with most funds delivering at or above benchmark returns over most time periods.1
  2. Members are not charged extra if they stop contributing.
  3. There are no exit charges for members accessing their pensions on retirement. However, there may be an exit charge if an individual transfers out of the Crest Growth Plan while still in service, if the trustees decide to move the whole plan to another pension product, or if the trustees decide to wind up the scheme.

1 Returns assessed based on the Compound Annual Growth Rate (CAGR) over 3, 5, 10 and 15 years to 31 January 2016.

Trustees should refer to the scheme summary we enclosed with the letter we sent them in December 2015 for details about the specific charges applying to their Crest plan.

To find out more about the outcome of the reviews read our Trustee mailings questions & answers.

Available material

Additional information on the new responsibilities for trustees

Refers trustees to their new responsibilities on page two.

Last updated: 21 Mar 2016

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.