Scottish Widows Flexible Group Personal Pension (GPP) Plan

TCA

Anybody got one of these animals? Scottish Widows Flexible Group Personal Pension (GPP) Plan?

Having not long amalgamated my contracted out pension into my newly revamped former works pension plan (Friends Life Group Personal Pension Plan), then painstakingly made fund selections, considered asset allocations etc...... now the pension administrator has sent a letter advising that the FL pension is being closed (their word) subsequent to a market review and a new lower charged plan established with Scottish Widows.

They say they will no longer be conducting any governance on the FL arrangement including the ongoing review of the investment funds. What exactly does this mean? Other than what I've just repeated, there's just loads of bumph about the lower charges (0.45% compared to 0.6%) plus all the transfer documentation, which is a complete minefield. I've got half a clue about pensions and funds but to someone not at all in the know, this is just goobledegook!

I don't understand the use of the word "closed" yet this is apparently an "offer". Can I stay as I am if I want?

I'm not in the UK this month (offer valid until 31st March, great!), so only looking at scanned documents sent to me, and can't even see the funds available under this new arrangement. I found odds and sods on the Scottish Widows website but I'm not sure I'm looking at the right thing.

Can anyone shed any light on any of this for me?

Thanks

dunstonh

They say they will no longer be conducting any governance on the FL arrangement including the ongoing review of the investment funds. What exactly does this mean?

It means if you go to them for fund switches or advise, they wont give it.

I don't understand the use of the word "closed" yet this is apparently an "offer". Can I stay as I am if I want?

They mean it is closing for new membership with that employer.

bowlhead99

My firm did the same a few years back, created a new group personal pension plan with SW and started contributing into that for me. I didn't bother filling a transfer form in so my old pension stayed in the same old place (Scottish Equitable) and growing on its own based on the investments chosen within it, just without any new contributions.

After a while I realized I hadn't been paying the old one any attention and as an inactive member I probably didn't have the most competitive fee tariff; I moved it over to a SIPP provider to access a wider choice of investments. I could have moved it to SW and keep the pot with my employer's current contributions but was happy to move it elsewhere.

Try here for the SW choices for investment options (my group personal pension is Series 2, and some of the funds are OK). There is probably a full brochure, and a default choice of investment fund if you don't tell them where you want the new contributions to go.

As my employer doesn't put a huge percentage in, I just let them put their cash into the newer SW fund but my own contributions go into my own personal scheme. I made that choice because I didn't want to have my own money 'trapped' in the small new pot and have to use the SW fund choices. Obviously if their contributions are contingent on you putting in some minimum amount alongside theirs, you should keep doing that to get the free cash.

TCA

dunstonh wrote: »

It means if you go to them for fund switches or advise, they wont give it.

Thanks dunstonh. Having never used to them for advice or fund switching (which I can do online with FP), I don't think this will be an issue. So I should just be able to continue with FP using their online access for switching, new funds direction, change of personal details etc.....?

bowlhead99 wrote: »

Obviously if their contributions are contingent on you putting in some minimum amount alongside theirs, you should keep doing that to get the free cash.

Thanks for the detailed reply bowlhead. This is a former employer's pension so nothing being contributed.

Looks like I have the whole gambit of internal and external SW funds to choose from but have to say I'm not fussed about changing from my FL Balanced Index Enhanced Fund of Funds, which is 70% BlackRock trackers. The only equivalent option with SW is State Street Global Advisors index fund range and can't see how they'd be any better than BlackRock.

What I'm not clear on is the charging though. The administrator makes a straight comparison (of future pension value) using my current AMC 0.6% versus the proposed SW AMC of 0.45%. Firstly, about 25% of my pot is former protected rights with charges at 0.5%, which they conveniently forget. And secondly, wouldn't all their external fund offerings with Baillie Gifford, Newton, Investec, Jupiter etc.... all have their own AMCs anyway, and likely higher than 0.6%?