Royal & SunAlliance UK Life & Pensions has introduced a pension fund trustee plan for trustees of self-invested personal pensions (Sipps), small self-administered schemes (SSAS) and occupational pension schemes.
The plan accepts single premiums only and aims to provide a range of investments to trustees that they would only otherwise be able to access through a Royal & SunAlliance pension. It will use pensions solutions, the web-based administration system that is also used for the other Royal & SunAlliance pension products. This enables the annual management costs to be driven down. The annual management charge has four tiers, ranging from 1 per cent down to 0.4 per cent.
There are 12 fund links to cater for a range of investment objectives and risk profiles, including the unitised with-profit fund, cash deposit and Eurotech fund and 12 free fund switches are allowed each year. However, there are no external fund links and this is where the plan is lacking. Trustees may not want to place their pension pot with a single fund management group even though this plan offers diversity on a geographical and sector basis.
Scottish Mutual's classic flexible trustee investment plan is, as the name suggests, more flexible in comparison. It accepts both regular and single premiums and offers 22 funds including four external funds from Fidelity, Merrill Lynch, Newton and Perpetual. However, its annual management charge of 1 per cent for the first five years and 0.6 per cent thereafter may be more expensive than the Royal & SunAlliance product, depending on the size of the fund.