These will operate alongside the existing mono-charged shape. At the employer’s request, advisers will have more scope to provide support and advice for individual scheme members at joining to promote scheme take up and ongoing services for both employer and employees
To encourage more saving an active member discount will be offered to employees who pay regular contributions. An annual management charge discount of between 0.25 per cent and 0.75 per cent will be given depending on the charge shape chosen. Employees can still benefit from the discount after leaving the employer scheme if contributions continue to be paid.
Head of group marketing Alison Nelson says:
“It is challenging for advisers to provide workplace advice, support and marketing within the current 1 per cent world and this move brings greater flexibility to do so. We believe that if advisers and employers want to provide extra services or more advice to employees they should have the option to pay for it either as a fee or through scheme charges.
“Our new suite of flexible options supports the need for individual advice within a group setting, which in turn supports the Government’s agenda to use the workplace to boost retirement saving.”