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What is the charge cap?

The charge cap is a government-set limit. It’s the annual amount that can be charged to savers in default arrangements within defined contribution pension schemes used for auto-enrolment. Default arrangements are the investment fund or funds that an employer or scheme trustee have chosen for members who haven’t actively chosen a fund. The default arrangement for members of The People’s Pension who haven’t made an active choice is the ‘balanced’ investment profile.

The cap has applied since April 2015 and is currently set at 0.75% of funds under management within the default arrangement, or an equivalent combination charge. The cap applies to all scheme administration and investment charges, excluding transaction costs. This means it doesn’t currently include costs that are incurred by the investment manager when assets are bought, sold or lent by the fund.

What are my employees being charged?

There is an annual management charge made up of 3 elements:

  • a management charge of 0.5% of the value of their pension pot each year
  • a potential rebate on the management charge of between 0.1% on savings over £3,000 and 0.3% on savings over £50,000
  • an annual charge of £2.50 deducted during the scheme year (which runs from 1 April to 31 March), if they have investments with us as of 1 April.

Find out more about our member annual management charge.

Is there a conflict between what intermediaries and advisers provide for their employer clients and what The People’s Pension offers them?

We don’t think so. Intermediaries and advisers (i.e. financial advisers or business adviser such as an accountant, bookkeeper or payroll professional) are the experts on their bit of the process, and we are the expert on ours. Our job is to make advisers’ life easier so that they can get on with what they do best.

We’re not trying to do advisers’ job for them, we want to work with them to offer the best possible service and support proposition to their clients.

How does an employer pay the initial one-off set-up charge?

An employer pays the one-off set-up charge by Direct Debit, debit card or credit card on our website during the sign-up process.

If the employer has obtained a reduced rate code from an intermediary or adviser (i.e. a financial adviser or business adviser such as an accountant, bookkeeper or payroll professional) the employer will need to enter this before making the payment.


I’m an adviser. Will I be charged to sign up my employer clients?

No. The one-off set-up charge will be levied on the employer during the set-up process. In recognition of the value that advisers bring to what we do and to their clients, we’ve arranged a special reduced rate of £300 + VAT for employers signing up as a result of an adviser recommendation (i.e.  from a financial adviser or business adviser such as an accountant, bookkeeper or payroll professional).

If, as an adviser, you haven’t received your code offering a reduced charge to pass on to your clients, email our New Business team at or call us on 01293 586666 option 2.

How much do you charge employers who sign up to The People’s Pension?

The employer set-up charge is £500 plus VAT.

There’s a reduced charge of £300 plus VAT for those who sign up to The People’s Pension using a business adviser, financial adviser or through a federation. There’s no ongoing charges for employers, so no monthly or annual charge for employers to pay.

The one-off set-up charge covers all the ongoing support businesses receive from us. This means we can continue to maintain high standards of service and support for new and existing customers.


Employer charges – who will this affect?

The one-off set-up charge only applies to employers who started sign-up after 23 November 2015 with a staging date of January 2016 onwards.
Existing customers adding new subsidiary companies to the scheme won’t be charged, and neither will existing customers who’ve other products with our founder B&CE (e.g.  EAC and ELC).