Investments for DC funds
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.
The following DC investment options are available to employee members of the Standard Section:
Option 1 – Default Investment Option – Cash Focussed Lifestyle Strategy.
This lifestyle strategy is the default option for Standard Section members with excess DC contributions or TUCs who do not make any active investment decision.
Option 2 – Self-select lifestyle strategies– Two alternative lifestyle strategies
Option 3 – Self-select investment funds– Nine asset class funds
Default investment option
- Cash Focussed Lifestyle Strategy
This is the default lifestyle option for Standard Section members with excess DC contributions/TUCs who are less confident about making investment decisions and require assistance in making their choice. This option has, with the Trustee and its investment adviser’s input, been designed to offer members a capital preservation objective and should meet the needs of the majority of Standard Section members with excess DC contributions/TUCs. The design of this strategy assumes that on retirement members will take their 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 benefit then you should consider some of the other options available.
- The default option uses a process called Lifestyling. This means your Member Account is automatically moved 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 spread across a broader range of investments as the lifestyle strategy gradually moves to the Legal & General Diversified Growth Fund. In the final 5 years before your target retirement age your Member Account will automatically begin switching into the Legal & General Cash Fund to protect its value. By your target retirement age your Member Account will be invested 30% in the Legal & General Diversified Growth 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.
For those who wish to actively choose where they wish to invest their Member Account, the following options are available:
Self select lifestyle strategies
The two lifestyle strategies below are closed. However, Standard Section employee members who are currently paying Top Up Contributions (TUC) into either of these lifestyle strategies can continue investing in them as appropriate.
Self select investment funds
- Legal & General Cash Fund
- Legal & General (PMC) Pre-Retirement Fund
- Legal & General (PMC) Over 5 Year Index Linked Gilts Index Fund
- Legal & General (PMC) AAA-AA-A Corporate Bond All Stocks Index Fund
- Legal & General (PMC) Diversified Fund
- Legal & General (PMC) UK Equity Index Fund
- Legal & General (PMC) Global Equity 30:70 Index 75% GBP Currency Hedged Fund
- Legal & General (PMC) World (Ex UK) Equity Indexed Fund
- Legal & General (PMC) World Emerging Markets Index Fund
You can access a list of charges for the available funds here.
MANAGE YOUR ACCOUNT
You can switch between the investment funds that the Trustee has made available at any time. Switching is currently free of charge. You can manage your account by clicking here. This will take you to the Legal and General website where you can access information about your personal fund whenever you want.
If you require 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. The IFA Promotions website www.unbiased.co.uk has contact details for local independent financial advisers.