British Steel Pension Scheme
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Investments

You must decide where you wish to invest the contributions to your Member Account.  This is an important decision, because the investment returns, risks and charges that your account achieves will have a direct impact on the size of your Member Account at retirement and the level of pension that you will have.

The Trustee has appointed Legal & General to provide administration and investment services to the Scheme.  You can choose where you wish to invest your Member Account from a range of funds offered by Legal & General. 

Manage Your Account

On joining the DC Section, Legal & General will have issued you with a unique reference number.

You should keep this number safe, because it will allow you to register online for Legal & General’s secure member website, Manage Your Account, where you can review and change your investment choices. 

Your investment options

The following investment options are available to members with pension savings in the DC Section:

Annuity Focussed Lifestyle Strategy

This lifestyle strategy is the default option for DC Section members who do not make any active investment decision.

This option has, with the Trustee and its investment adviser’s input, been designed to meet the needs of the majority of DC Section members.

The design of this strategy assumes that when you retire you will use your Member Account to purchase an annuity, after taking the maximum tax-free cash lump sum allowed. If this is not how you intend to use your benefits, then you should consider some of the other options available.

‘Lifestyling’ is a process which automatically moves your Member Account from investments designed for growth to investments that may protect the value of your account and are a better match for taking your benefits as an annuity and cash.

This lifestyle strategy is currently made up of the Legal & General Global Equity Market Weights 30:70 Index Fund for the growth phase i.e. the period up to 20 years before your target retirement age.

For the decumulation phase, the 20 years running up to target retirement age, your Member Account will be spread across a broader range of investments and the lifestyle strategy gradually moves to the Legal & General Diversified Fund.

In the final 10 years before your target retirement age your Member Account will be moved into the Legal & General Pre-Retirement Fund and Legal & General Cash Fund.

By your target retirement age you will be fully invested in these funds in a 75%/25% ratio.

Important note: This lifestyle strategy targets cash and an annuity purchase at your target retirement age and may not be appropriate if you do not intend to buy an annuity.

Cash Focussed Lifestyle Strategy

This lifestyle strategy is the default option for Standard Section members with Excess Contributions or Top Up Contributions who do not make any active investment decision.

This option has, with the Trustee and its investment adviser’s input, been designed to meet the needs of the majority of Standard Section members with Excess Contributions and/or TUCs.

The design of this strategy assumes that when you retire you will take your Member Account as a lump sum (either as a single payment or up to three payments). If this is not how you intend to use your benefits, then you should consider some of the other options available.

‘Lifestyling’ is a process which automatically moves your Member Account from investments designed for growth to investments that may protect the value of your account as you approach your target retirement age

This lifestyle strategy is currently made up of the Legal & General Global Equity Market Weights 30:70 Index Fund for the growth phase, i.e. the period up to 20 years before your target retirement age.

For the decumulation phase, the 20 years running up to target retirement age, your Member Account will be gradually moved into a diversified fund spread across a broader range of investments as the lifestyle strategy gradually moves to the Legal & General Diversified Fund.

When you are 10 years from your retirement date 70% of your Member Account will be gradually moved into a low risk fund that invests in short term deposits, with the aim of reducing the impact of any sharp downward movements on the value of that part of your pension pot as you approach retirement.  By the time you reach your target retirement age, your Member Account will be invested 30% in the Legal & General Diversified Fund and 70% in the Legal & General Cash Fund.

Important note: This lifestyle strategy targets cash at your target retirement age and may not be appropriate if you do not intend to take your Member Account as cash.

Self-select lifestyle strategies

You can choose to invest your Member Account is some alternative lifestyle strategies:

The two legacy lifestyle strategies below are now closed. However, DC members who paid Top Up Contributions (TUC) into either of these lifestyle strategies can continue investing in them as appropriate.

Self select investment funds

You can access a list of charges for the available funds here.

Changing your investments

You can switch between the investment funds that the Trustee has made available at any time.  Switching is currently free of charge and can be done through manage your account, the secure website provided by Legal and General.

More information

If you need further information in regard to investment choices or access to Legal & General investment literature please click here and refer to the Generation 3 fund range.

Neither the Company nor the Pensions Office can give you advice about selecting the appropriate investment fund.  If you need help in deciding which of the funds best suits your investment needs, you should seek external independent financial advice

You can find an Independent financial adviser in your area at www.unbiased.co.uk.

As a deferred pensioner, you will be sent an annual statement, showing the value of your individual Member Account as at 5 April each year. This will be posted to your home address, so please make sure that we have your up-to-date address. You can update your personal details online, through Legal & General’s secure website: Manage Your Account.