Understanding Scottish Widows Pension Management Charges

intalex

dunstonh said:

intalex said:

I have a related question- I also have pens portfolio two and see a monthly credit titled “AMC adj” of approx 0.05% of the principal units. I’ve had this pot for about 8 years but as of now I don’t see any debits in there for the actual AMC - not sure if the credits are some kind of monthly “earnings” from the fund net of a monthly AMC perhaps?

Many of SW's plans sell units to pay the charges.   So, they would sell only what is needed to meet the net charge.

are you sure the adjustment is a positive and not a negative.  Normally, the default is the maximum and adjustments are downwards.

Yes I’m certain it’s a credit as my number of units go up each month (by the same number). Managed to find a document relating to the pension plan which implies the AMC is factored into the fund unit price, so it seems  it’s not been overlooked - the AMC adj is probably a company negotiated discount being rebated back into the pot.

dunstonh

intalex said:

dunstonh said:

intalex said:

I have a related question- I also have pens portfolio two and see a monthly credit titled “AMC adj” of approx 0.05% of the principal units. I’ve had this pot for about 8 years but as of now I don’t see any debits in there for the actual AMC - not sure if the credits are some kind of monthly “earnings” from the fund net of a monthly AMC perhaps?

Many of SW's plans sell units to pay the charges.   So, they would sell only what is needed to meet the net charge.

are you sure the adjustment is a positive and not a negative.  Normally, the default is the maximum and adjustments are downwards.

Yes I’m certain it’s a credit as my number of units go up each month (by the same number). Managed to find a document relating to the pension plan which implies the AMC is factored into the fund unit price, so it seems  it’s not been overlooked - the AMC adj is probably a company negotiated discount being rebated back into the pot.

A discount in that scenario would result in a credit.

P1Fanatic

intalex said:

dunstonh said:

intalex said:

I have a related question- I also have pens portfolio two and see a monthly credit titled “AMC adj” of approx 0.05% of the principal units. I’ve had this pot for about 8 years but as of now I don’t see any debits in there for the actual AMC - not sure if the credits are some kind of monthly “earnings” from the fund net of a monthly AMC perhaps?

Many of SW's plans sell units to pay the charges.   So, they would sell only what is needed to meet the net charge.

are you sure the adjustment is a positive and not a negative.  Normally, the default is the maximum and adjustments are downwards.

Yes I’m certain it’s a credit as my number of units go up each month (by the same number). Managed to find a document relating to the pension plan which implies the AMC is factored into the fund unit price, so it seems  it’s not been overlooked - the AMC adj is probably a company negotiated discount being rebated back into the pot.

I'm the OP and that's exactly it. You don't see any debits as the 1% AMC is automatically taken from the funds unit price If you / your company have a lower negotiated AMC with SW then they refund it as unit credit each month.

On the SW Pensions website you should be able to check your actual AMC under the Policy Summary page where you can find Charging Structure -> AMC
 

intalex

P1Fanatic said:

I'm the OP and that's exactly it. You don't see any debits as the 1% AMC is automatically taken from the funds unit price If you / your company have a lower negotiated AMC with SW then they refund it as unit credit each month.

On the SW Pensions website you should be able to check your actual AMC under the Policy Summary page where you can find Charging Structure -> AMC
 

Mine says (no way to know though): 

This member is assigned to	NIL CHARGE