50% charges on auto enrolment pension?

dunstonh

St James Place is expensive and its clear that the employer hasnt really given the interests of the employee much thought. However, the charges you describe are in breach of AE rules. These are the caps:

A single percentage charge capped at 0.75% p.a.
or
A combination of contribution charge of funds under management but reduced annual charge cap
1% initial charge or lower - 0.6% p.a.
Higher than 1% but lower than 2% - 0.5% p.a.
Higher than 2% but no higher than 2.5% - 0.4% p.a.

Fee options are possible
£10 a year or less - 0.6%
More than £10 but less than £20 - 0.5%
More than £20 but no more than £25 - 0.4%

These charge limits apply at member level – that means that each relevant member must not be subject to a charge in excess of the limits above.

sandsy

Have you signed any documents agreeing to receive advice on your auto-enrolment pension?

xylophone

http://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/automatic-enrolment/how-much-do-i-and-my-employer-have-to-pay

You might benefit from a conversation with PAS?

Ex_Gas_Guzzler

Update on pension is that following discussions there will be no 50% charges on auto enrollments which is great news for me and my colleagues.

Shame we have had to fight for the change

The advisor did mention that he will be working for nothing now though

Thanks everyone for your help it came from n very useful

atush

Will everyone paying the charge be receiving the money back?

Have them ask, or report the adviser.

dunstonh

I'm surprised SJP allowed this. Assuming they knew about it. Despite their faults, they are not one that would normally allow such a rule breach to occur.

Malthusian

Ex_Gas_Guzzler wrote: »

The advisor did mention that he will be working for nothing now though

I would find that even more disturbing than the notion that he was going to take 50% of the first year's contributions (illegally). Because now I don't know what he is actually going to take. I know he isn't working for nothing.

How can you have any confidence in the "advice" given by someone who does not understand, or chooses to ignore, the rules on auto-enrolment charging?

Ex_Gas_Guzzler

atush wrote: »

Will everyone paying the charge be receiving the money back?

Have them ask, or report the adviser.

I have a colleague who enrolled a few months back they have been paying 50% and now keen to know if that was will be refunded

How far back should this go?

Anyone who signed last week is ok
The commission is now just .5% on growth pa

Ex_Gas_Guzzler

dunstonh wrote: »

I'm surprised SJP allowed this. Assuming they knew about it. Despite their faults, they are not one that would normally allow such a rule breach to occur.

They know about it, he said it was to cover their costs to set it up

sandsy

Ex_Gas_Guzzler wrote: »

I have a colleague who enrolled a few months back they have been paying 50% and now keen to know if that was will be refunded

How far back should this go?

Anyone who signed last week is ok
The commission is now just .5% on growth pa

Commission is not allowed. What is this 0.5%? What do you get for it?