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TUC stake plan offers five funds

The Trades Union Cong-ress&#39s stakeholder plan will offer the choice of two fund managers and five funds with free switching.

The plan, which was officially launched last week at the TUC annual conference in Glasgow, has been developed in partnership with Prudential and Standard Life Investments. It is one of the first stakeholder schemes to be announced by a major organisation.

The scheme has a 0.85 per cent annual charge. Minimum contribution is £10 a month.

Investors can choose to invest in three funds from the Pru – lifestyle, cash and tracker – or two funds run by Standard Life Investments – the ethical and UK aggressive equity growth funds.

The lifestyle fund serves as a default investment option and if an investor does not choose a specific fund, contributions are automatically credited to the fund.

A board of trustees will be established to ensure members&#39 interests are protected. The scheme will be aimed at TUC members but will be available to all workers.

The TUC will also be offering an Isa aimed at encouraging young people to save and will include the option to shift into stakeholder at a later date. Other benefits include income protection and life insurance options.

Prudential group chief executive Jonathan Bloomer says: “The portability of the scheme is one of the strong-est features. If people are unhappy with who is managing, they can simply switch the fund manager.”

TUC senior pensions officer Joanne Segars says: “The prime motivation is to offer everyone access to a decent pension scheme.”

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