Information about the remuneration options on your workplace scheme

We’re changing some of the adviser remuneration options on your workplace pension scheme

We’ve recently written to you and the employer/trustees following a review we’ve carried out with our Independent Governance Committee to make sure we’re continuing to offer value for money.

When the employer/trustees set up their scheme, you both agreed that we’d pay you a remuneration payment when an existing member made an ad hoc increase to their plan or if someone new joined their scheme*.  From 1 December 2021, we’re no longer going to be making these remuneration payments to you.

On this page you’ll find some Q&As which will help with any immediate questions you have, along with copies of the letter and Q&As we’ve sent your client.

* We’ve already closed our Talisman Group Personal Pension scheme to new joiners, so if this is your client’s scheme type, they’ll only be affected by the ad-hoc increases.

Adviser materials

An ad-hoc increase can be in the form of a new single, transfer, regular payment, or where a member has elected to increase their existing regular payment, for example, the regular payment is increasing from £100 to £150 per month, no remuneration will be paid on the £50 increase.

We’ll continue to pay you when there’s an automatic increase applied to the member’s plan. This can be part of a contractual increase, either through a salary increase or as a fixed percentage, or an increase by the Retail Price Index (RPI).

No, this change does not affect these members. You may still receive remuneration payments in this circumstance. 

It depends on the type of pension contract. If the member has a group personal pension plan (GPP), and you want to provide one-off advice then you can set up an ad-hoc adviser charge option. You’ll need to agree the charge with the member and they’ll need to complete an adviser charge instruction form and send this to our dedicated servicing team.

Yes, we can remove your agency from the workplace pension scheme. This will mean you no longer have access to pension scheme or customer data. You may want to inform the employer/Trustee of your removal.

We conducted a value for money review across our workplace plans with our Independence Governance Committee, and agreed that we needed to take this action now to allow charges to be reduced.

Employer materials

An ad-hoc increase can be in the form of a new single, transfer, regular payment, or where a member has elected to increase their existing regular payment, for example, the regular payment is increasing from £100 to £150 per month, no remuneration will be paid on the £50 increase.

We’ll continue to pay your adviser when there’s an automatic increase applied to the member’s plan. This can be part of a contractual increase, either through a salary increase or as a fixed percentage, or an increase by the Retail Price Index (RPI).

Due to the version of workplace pension scheme you have, there are no alternative adviser remuneration arrangements available.

Yes, we’re not removing any adviser details from the scheme, so they’ll remain on our records for your scheme until we’re told otherwise.

The Annual Management Charge for new entrants and ad-hoc payments won’t  include any remuneration charge, so  the charge to the member will be reduced.

When you set up your scheme, you’ll have completed an employer application form which will have detailed the agreed remuneration that we deduct from the member’s plans and pass onto your adviser.

The Committee’s principle function is to act in the interests of Royal London’s workplace pension customers and pathway investors. Their job is to discern the value for money (VFM) we are providing to these customers and challenge us where they believe VFM needs to improve. There’s more information here.

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.