This slide is for financial advisers onlylibrary.adviserzone.com/pe011.pdfThis slide is for...
Transcript of This slide is for financial advisers onlylibrary.adviserzone.com/pe011.pdfThis slide is for...
This slide is for financial advisers only
Standard Life has provided these template slides for you to use with potential
corporate clients. You can use these slides to inform corporate clients about the
changes to their scheme as a result of the DWP announcements and discuss the
Standard Life proposition. You can pick and choose the slides you would like to use.
You can add your own company logo and any regulatory requirements.
There is an appendix of slides which shows the default investment solutions your
corporate clients may have for their scheme.
Standard Life Assurance Limited is registered in Scotland (SC286833) at Standard Life House, 30
Lothian Road, Edinburgh EH1 2DH.
Standard Life Assurance Limited is authorised by the Prudential Regulation Authority
and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
www.standardlife.co.uk
Getting ready for auto-enrolment Date:
Client name:
Scheme no:
Adviser name:
Adviser firm:
Product type:
Changes to your qualifying
workplace pension scheme
Budget 2014 and DWP announcements
Budget 2014
• DC flexibility from April 2015
• DB to DC transfers allowed with advice
• £10k annual allowance after flexibility is
accessed
• Removal of 55% tax on death where
member dies before age 75
• TFC staying at 25%
• Capped drawdown to continue
• Guidance guarantee
DWP
• Charge cap of 0.75% on QWPS default
investment solution from April 2015
• Removal of consultancy charging by
April 2015
• Removal of commission on QWPS by
April 2016
• Removal of AMDs by April 2016
• Minimum quality standards and new
transparency in workplace pensions
Flexibility Transparency
There is an increased focus in pensions by the Government which has resulted in
two fundamental changes.
What these changes mean for you?
Your pension provider, Standard Life, is taking a fair approach across a range of issues
with regard to the DWP announcements. The changes will leave most employees in a
better position.
As you have already staged, Standard Life’s priority is to make sure your scheme is
compliant by April 2015.
Changes to workplace savings – Timeline
Late November 2014 You’ll hear from Standard Life
about the changes that will be
made to your scheme
Mid January 2015 Standard Life will write to employees
about these changes
{optional as only for schemes with
AMDs}
From April 2015 Changes will be implemented.
0.75% charge cap on default investment
solution takes effect.
Commission stopped (if appropriate)
AMDs no longer allowed (if appropriate)
New freedom and flexibility comes into
effect for pension savers
March 2014
DWP announce: Charge cap of 0.75% on QWPS default investment
solution from April 2015
Removal of consultancy charging by April 2015
Removal of commission on QWPS by April 2016
Removal of AMDs by April 2016
Budget 2014 – more flexibility announced:
DC flexibility from April 2015
DB to DC transfers allowed with advice
£10k annual allowance after flexibility is accessed
TFC staying at 25%
Death benefit tax will come down from 55% to 0%
for deaths before age 75 and to 45% for deaths
from age 75 (new rates confirmed in Taxation of
Pensions Bill)
Capped drawdown to continue
April 2014 New ISA limits up to £15,000
What these changes mean for you?
To meet the new standards, the following changes will be made to
your scheme:
Current scheme discount is ‘X’
The level of scheme discount will change to ‘Y’
This means that if an employee is invested in the scheme default,
the charge will meet the new standards of 75bps.
What do these changes mean for you?
Due to the DWP rules Standard Life can no longer facilitate commission as a way for
you to pay for my services.
I would still like to offer you services to help your employees make the most of their
pensions; however, we would need to discuss the appropriate fee structure.
Service Fee
XXX £Y
XXX £Y
XXX £Y
XXX £Y
Benefits of your pension scheme
Your scheme will be compliant with minimum standards set by the government,
but research shows that the minimum will not always deliver the best outcomes
for employees at retirement.
Contribution
decisions
How much is
paid in
Investments
decisions
How the
investments
perform
Retirement
decisions
How the
money is taken
CORE DRIVERS OF GOOD MEMBER OUTCOMES
Your company pension with Standard Life has been designed around these
principles and aims to achieve the best possible outcomes for your employees
at retirement.
Investment solutions
Standard Life’s default investment solution
• A quality default fund that’s suitable for your workforce
• Underpinned by robust investment governance
• Your default fund [insert name of default fund] has been designed in line with government guidelines
• Part of our risk based fund suite
{optional as not applicable for Stakeholder or Traditional
Lifestyle Profiles}
• Benefits from strategic lifestyling which involves derisking the investment allocation as a member gets nearer their nominated retirement date
{optional as only applicable to CIP range solutions}
Employee investment choice
• Flexibility
• Easy choices
• Risk-based approach offered through
the default option, strategic lifestyle
profiles and risk-based fund range
• Providing access to market leading investment manager Standard Life Investments
Standard Life’s
corporate investment proposition
A determined focus on
providing good value options
Future-proofed for auto-
enrolment
An ingrained culture of careful governance and
monitoring
Truly innovative investments that continually strive to provide best-in class options for employees
Access to a wide range of external fund managers
Expert investment
management from Standard
Life Investments
Active management
that adds genuine value
Please note these options are not available on
stakeholder pensions.
Employee communications To drive engagement and contribution decisions
Building engagement
• Easy to access and available anytime
• Developed based on customer insight and contains interactive content
and tools to both educate and inform
• Campaign support material to order online - personalised with logos and
call to actions
• Employees can visit Employeezone or download Standard Life’s
MyPortfolio App for iPad, iPhone and Android to view details of their
pension plan, access tools and make changes
Through your company pension website
Apple, iPad and iPhone are
trademarks of Apple Inc.,
registered in the US and other
countries. App Store is a service
mark of Apple Inc.
Building engagement Through your company pension website
Online tools and information Total support
Retirement lifestyle calculator Retirement planner
Online access Total control for the member
iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries.
App Store is a service mark of Apple Inc.
Suggested worksite campaigns On-going member engagement
Auto-
enrolment Transfers Investments Contributions
Month 1 Month 3 Month 6 Month 9
Auto-enrolment campaign
Consolidation campaign
Investment campaign
Risk profiling tools online
Direct mail
3 steps campaign
Retirement solutions
Supporting retirement • Access to the freedoms and flexibility allowed by the Budget 2014
• Information members need at the right time to help them make the right choices
• A wealth of online support and information
• Access to retirement specialists who can talk them through the options available
• Retirement roadshows - free of charge - where your members can meet Standard Life experts
and learn more about their retirement choices. Subject to availability within selected regions
Any questions?
Appendix 1
Lifestyle Profiles •Strategic Lifestyle Passive Plus III Profile (S3PP)
Standard Life Passive
Plus III Pension Fund
(CCHD)
Standard Life Strategic
Pre Retirement (B)
Pension Fund (KKFF)
Standard Life Strategic At
Retirement Pension Fund
(BDAD)
Lifestyle Profiles •Strategic Lifestyle Active Plus III Profile (S3AP)
% o
f in
vestm
ents
Standard Life Active Plus
III Pension Fund (DDNA)
Standard Life Strategic
Pre Retirement (A)
Pension Fund (BDAE)
Standard Life Strategic At
Retirement Pension Fund
(BDAD)
Investment flexibility •Standard Life Balanced Managed II Lifestyle (4BAL)
Standard Life
Managed Pension Fund
(FA)
Standard Life Multi-Asset
Managed (20%-60%
Shares) Pension Fund
(F8)
Standard Life Annuity
Purchase Fund (F9)
• Automatic monthly switching
• Targeted to individual retirement age
Standard Life Deposit and
Treasury Pension Fund
(G4)