Member annual management charge
Save more, grow more. We give over £1.5 million back to our members each month1 in rebates on our charge
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Pension management charges
Every workplace pension scheme charges members for looking after their money. You might hear this called an annual management charge or AMC for short. The higher the charge, the less money goes towards your retirement.
As we’re run by a not-for-profit organisation, we can help you save thousands of pounds more2 by reducing the rate we charge you as your savings increase.
What your charge pays for
Among other things, it pays for:
- Expert decision making on where your money is invested – so it can grow for your future.
- Access to our UK-based telephone support team – on hand to answer any questions you have.
- Strong scheme governance through independent trustees who ensure the scheme operates in your interest.
- Maintaining your Online Account and calculators which can help you manage your pension savings.
- Day-to-day running costs – such as producing annual statements.
The Trustee of The People’s Pension act on your behalf to ensure that the Scheme is properly run and offers value for members. This value is assessed every year – see our latest value for members statement.
1 £1.5 million is the combined total of the rebate on all of our members’ pots each month in 2023.
2 See the ‘You might be wondering…’ section below for details on how we worked out that members could save ‘thousands of pounds more’.
Our annual management charge (AMC)
Your AMC is made up of 3 parts
Annual charge
An annual charge of £4.50 deducted during the scheme year.
Management charge
A management charge of 0.5% of the value of your pension pot each year.
Rebate
A rebate on some of your management charge for savings over £3k.
Annual management charge explained
How the annual charge works
If you have money saved with us on 1 April each year, the £4.50 annual charge will be deducted from your pension pot by the end of the Scheme year – which runs from 1 April to 31 March. If you join after 1 April, you won’t pay the annual charge until the following Scheme year.
If you leave The People’s Pension before the annual charge is taken, it’ll not be deducted.
No annual charge is taken from flexi-access drawdown accounts – the annual charge will only be taken from your main pension pot.
The annual charge is not taken from pots below £104.50 when the charge is calculated.
How the management charge works
To put the 0.5% management charge another way, it’s just 50 pence a year for every £100 in your pot.
With us, you pay the same management charge regardless of the fund(s) you’re invested in – unlike some pension providers who charge you more for moving your savings around.
The 0.5% management charge is deducted automatically through a reduction in the unit price of the fund(s) that you’re invested in. Unit prices are calculated daily, and the charge is reflected in the value of your pension savings.
The exact calculation for working out the management charge can be found in our knowledge base.
How the management charge rebate works
The level of rebate you receive depends on how much is in your pot. You’ll receive a rebate on the management charge of between 0.1% and 0.3% based on the value of your pension pot when the rebate is calculated.
For the part of your savings:
- up to £3,000, no rebate is given
- over £3,000 and up to £10,000, we’ll give back 0.1%
- over £10,000 and up to £25,000, we’ll give back 0.2%
- over £25,000 and up to £50,000, we’ll give back 0.25%
- over £50,000, we’ll give back 0.3%.
This all happens automatically and you’ll see the rebate monthly in your Online Account.
Please note:
- The minimum we can give back as a rebate is 1 pence.
- If you take your money out, future rebates will be worked out on the value of any remaining savings.
- If you receive more than one annual statement from us a year, it could mean you’ve ended up with two different customer numbers. This means you may pay the annual charge twice and you may not receive your full rebate entitlement. If this has happened, find out how to correct the issue.
- This information is based on our standard charges. You can find out your exact charges in your Online Account. Once logged in, you’ll need to go to ‘Manage my pension’, followed by ‘Charges’.
For more detailed information, see the ‘You might be wondering…’ section.
What this means for you
How the rebate is calculated
Change the pot size in the calculator above to see how the rebate is worked out.
Up to £3k | Over £3k and up to £10k | Over £10k and up to £25k | Over £25k and up to £50k | Over £50k | Total | |
---|---|---|---|---|---|---|
The part of the savings… | £0@0.0% | £0@0.1% rebate | £0@0.2% rebate | £0@0.25% rebate | £0@0.3% rebate | £0.00 |
Estimated rebate for each band: | £0.00 | £0.00 | £0.00 | £0.00 | £0.00 | £0.00 |
Savings in each band: | Rebate in each band: | |
---|---|---|
Up to £3k | £0@0.0% | £0.00 |
>£3k to £10k | £0@0.1% rebate | £0.00 |
>£10k to £25k | £0@0.2% rebate | £0.00 |
>£25k to £50k | £0@0.25% rebate | £0.00 |
Over 50k | £0@0.3% rebate | £0.00 |
Total | £0.00 | £0.00 |
Our assumptions:
- Pounds and pence figures are for illustrative purposes only, the actual management charge and rebate may be slightly more or less than the figures quoted due to fluctuations in the unit price.
- The estimated management charge shown does not incorporate projected unit price or inflation increases during the Scheme year.
- The estimated rebate given is for a member who does not transfer in any other pension savings, and/or does not access their pot.
- For sums of £18,000 and above, the estimated rebate given may differ from the total rebate that would be applied due to rounding.
- This information is based on members who are on our standard charges. To find out exactly how much you’re charged, please log into your Online Account and go to ‘Manage my pension’, followed by ‘Charges’.
Discover the value of your pension pot
Use your ‘current total fund value’ from your Online Account in the calculator above to get an idea of your annual management charge at the moment.
Set up your Online Account Access your Online Account
Boost your savings with us to receive a larger rebate
Saving for later life is one of the best things you can do with any spare money – perhaps not one of the most fun things, but definitely one of the smartest. By saving a little more, you could increase the rebate you receive on your management charge, reducing the rate you’re charged. This could add thousands of pounds more1 towards your future. There are 2 ways you could consider doing this.


1. Bring all your pots together
If you’ve worked for more than one employer, it’s likely you’ll have more than one pension pot. By bringing all your pots together with us (known as transferring or consolidating), you could receive a larger rebate as your pension pot would be bigger. Plus, it’ll make it easier to keep track of your money.


2. Increase the amount you pay in
The more you pay in (or ‘contribute’) to your pension, the larger the rebate you may receive – which could reduce your charge rate. You can ask your employer to set up the extra payments for you or you can make personal payments directly into your pension.
1 See the ‘You might be wondering…’ section below for details on how we worked out that members could save ‘thousands of pounds more’.
The impact of boosting your savings


Neil has saved £1,500 so far
So in a typical year, the annual charge of £4.50 plus the management charge of 0.5% meant that he paid £122 and received no rebate.
What will happen as his pot grows
£120 is paid into Neil’s pot each month.
Once he has over £3,000 in his pot, he’ll start to receive a rebate on his management charge, providing a nice little extra boost to his pension savings.
Plus, he could get there quicker if he considered bringing other pension pots into The People’s Pension or increasing the amount he contributes.


Kate has £15,000 saved so far
So in a typical year, the annual charge of £4.50 plus the management charge of 0.5% meant that she paid £79.502. Then, each month throughout the year, she received a rebate that would have totalled £17 by the end of the year. Therefore, the charge less the rebate was £62.50 for the year.
How her charge rebate is calculated
On the £7,000 between £3,000 and £10,000, she received a rebate of 0.1% (£7 for the year). And on the £5,000 above £10,000, she received a rebate of 0.2% (£10 for the year).
The more Kate saves the bigger her rebate will become, meaning more money will be going towards her retirement. What’s not to like?
2 Pounds and pence figures are for illustrative purposes only and you may pay slightly more or less than the figures quoted. The management charge examples shown don’t incorporate projected unit price or inflation increases during the case study periods.
You might be wondering…
How is the management charge rebate calculated?
The rebate is calculated at the end of the rebate period based on the fund value3 of your pot on that date as set out in the ‘How the management charge rebate works‘ section above. The amount applied will vary depending on the number of days in each rebate period.
You’ll receive this a few days after the end of each rebate period based on the unit price on the date it’s added, although this could be longer in unforeseen circumstances4. If you request to take your money, or transfer your savings to another provider before the rebate is applied, you may not receive the rebate.
Here’s an example…
If you had £15,000 in your pension pot, your rebate will be calculated as follows:
- The first £3,000 gets no rebate
- The next £7,000 gets a rebate of 0.1% – equivalent to £7 a year
- The final £5,000 gets a rebate of 0.2% – equivalent to £10 a year
- For a 31-day rebate period, the rebate you’d receive would be £17x (31/365) = £1.44.
This information is based on our standard charges. You can find out your exact charges in your Online Account. Once logged in, you’ll need to go to ‘Manage my pension’, followed by ‘Charges’.
3 The fund value used to calculate the rebate on your management charge includes all savings, including monies held in flexi-access drawdown. Receipt of the rebate and its amount will depend on your activity during each rebate period. See ‘How is the rebate affected when I transfer money in’ and ‘How is the rebate affected when I take money out’ sections for more information. The fund value also includes previous rebates.
4 If the price of the fund falls between the date of calculation and the date the rebate is applied, then the pounds and pence rebate will buy more units than at the calculation date. And if the fund price rises, it will buy less units.
How will the rebate be added to my pot?
The value of the rebate will be used to purchase units in the fund or funds that you hold. If you hold more than one fund, units will be purchased proportionately, based on their value, across each of the funds held.
How is the rebate affected when I take money out?
When you take all your money out, you’ll not receive a rebate at the end of the rebate period, as you’ll have no savings remaining at that time.
If you take part of your money out, future rebates will be worked out on the value of your remaining savings. Typically, if your pot remains in excess of £3,000, then you’ll still receive a rebate.
Here’s an example…
If you had a pension pot of £15,000, you’d have benefited from a rebate of 0.2% on £5,000 of this and 0.1% on £7,000. If you then take £7,000 and your fund value reduces to £8,000 by the end of the next rebate period, you’ll then get a rebate of 0.1% on £5,000 of your savings.
More about your different options for taking your pension savings
How is the rebate affected when I transfer money in?
When your transfer from another scheme is completed, the value of that transfer will not be included when calculating the rebate at the end of that rebate period. It will be included in subsequent rebate periods.
This is because any transferred amount has to be invested before the start of any rebate period in order to qualify for a rebate for that period.
More about transferring other pensions into The People’s Pension
What happens to the rebate if an incorrect contribution is added?
If the value of your savings is wrong due to, for example, incorrect contributions or unit pricing errors and we’re required to carry out any corrective actions, we’ll refund any overpayment of our management charge and ensure you pay no more in management charges than if the error had not occurred.
No amendments will be made to any rebate of management charges applied to your pension pot, prior to the error correction date.
What will I see in my Online Account?
You’ll see the amount of rebate applied to your pension pot within the ‘Transactions’ tab of your Online Account. This will be shown monthly in pounds and pence.
If you don’t see a rebate in your ‘Transactions’ tab, it may be that you don’t have enough money in your pot to qualify for a rebate just yet. A rebate on the management charge only applies on savings over £3,000.
The first rebate we added to qualifying pots covered a 6-month rebate period from 17 February 2020 to 16 August 2020. From September 2020 the rebate was added monthly, so members may have seen a larger amount in the first rebate.
You’ll also see the annual charge in this ‘Transactions’ tab when it’s applied.
I’m a new member, do I qualify for a rebate?
To qualify for a rebate, your money must be invested by the first day of a rebate period. So, when you first join The People’s Pension, you won’t receive a rebate at the end of your first rebate period.
Only unitised funds are included in the charge calculation, and units must be held on the first day of the rebate period to receive a rebate. This means you’ll not start to qualify for a rebate until after the end of the opt-out period.
What happens with the AMC when I die?
The annual management charge will continue to be applied until the pot is claimed.
This means we’ll continue to apply the annual charge, the 0.5% management charge, and the rebate on the management charge until the pot is claimed.
Your fund will not receive a rebate for the rebate period in which the claim is paid to your beneficiaries.
Are there any other costs I pay?
Costs will also be incurred by investment funds when assets are bought, sold or lent by the fund. These are called ‘transaction costs’. Your pension pot is indirectly affected by such costs as these reduce the net investment returns of the funds.
Investment returns are automatically added to your pot through the unit price. These returns include the transaction costs.
How did you work out that I could save ‘thousands of pounds more’?
This projection is based on our charging structure of a flat 0.5% management charge, and using the following assumptions:
- a member aged 35 with a retirement age of 68
- a starting fund of £15,000
- earnings of £30,000 per annum
- gross contributions at 8% (of qualifying earnings for 2023/24 financial year)
- investment returns at 5% per annum
- inflation at 2.5% per annum.
Looking for more information?
MoneyHelper has more information in their ‘Top tips for your pension: Pension scheme charges’.
Oversee your pension using your Online Account
Manage your pension savings online, transfer in other pension pots, and see how much the management charge rebate adds to your retirement savings.
Get set up Log inI’m an employer
Pension management charges
Every workplace pension scheme charges their members for looking after their money. You might hear this called an annual management charge or AMC for short. Our charge is applied at a member level rather than scheme level, so everyone has access to the same great rate.
As we’re run by a not-for-profit organisation, we want to help our members (your employees) save thousands of pounds more2 by reducing the rate we charge them as their savings increase.
What the charge pays for
Among other things, it pays for:
- Expert decision making on where members’ money is invested – so their money can grow for their future.
- Access to our UK-based telephone support team – on hand to answer any questions they have.
- Strong scheme governance through independent trustees who ensure the scheme operates in the members’ interests.
- Maintaining members’ Online Accounts and calculators which can help them manage their pension savings.
- Day-to-day running costs – such as producing annual statements.
1 £1.5 million is the combined total of the rebate on all of our members’ pots each month in 2023.
2 See the ‘You might be wondering…’ section below for details on how we worked out that our members (your employees) could save ‘thousands of pounds more’.
You can download this video from our communications toolkit and share it with your employees to help them understand our annual management charge.
Our annual management charge (AMC)
An employee’s AMC is made up of 3 parts
Annual charge
An annual charge of £4.50 deducted during the scheme year.
Management charge
A management charge of 0.5% of the value of their pension pot each year.
Rebate
A rebate on some of their management charge for savings over £3k.
Annual management charge explained
How the annual charge works
If an employee has money saved with us on 1 April each year, the £4.50 annual charge will be deducted from their pension pot by the end of the Scheme year – which runs from 1 April to 31 March. If they join after 1 April, they won’t pay the annual charge until the following Scheme year.
If they leave The People’s Pension before the annual charge is taken, it’ll not be deducted.
No annual charge is taken from flexi-access drawdown accounts – the annual charge will only be taken from the employee’s main pension pot.
The annual charge is not taken from pots below £104.50 when the charge is calculated.
How the management charge works
To put the 0.5% management charge another way, it’s just 50 pence a year for every £100 in an employee’s pot.
With us, our members pay the same management charge regardless of the fund(s) they’re invested in – unlike some pension providers who charge different rates for different funds.
The 0.5% management charge is deducted automatically through a reduction in the unit price of the fund(s) that an employee’s invested in. Unit prices are calculated daily, and the charge is reflected in the value of their pension savings.
The exact calculation for working out the management charge can be found in our knowledge base.
How the management charge rebate works
The level of rebate an employee receives depends on how much is in their pot. They’ll receive a rebate on the management charge of between 0.1% and 0.3% based on the value of their pension pot when the rebate is calculated.
For the part of their savings:
- up to £3,000, no rebate is given
- over £3,000 and up to £10,000, we’ll give back 0.1%
- over £10,000 and up to £25,000, we’ll give back 0.2%
- over £25,000 and up to £50,000, we’ll give back 0.25%
- over £50,000, we’ll give back 0.3%.
This all happens automatically and employees will see the rebate monthly in their Online Account.
Please note:
- The minimum we can give back as a rebate is 1 pence.
- If an employee takes their money out, future rebates will be worked out on the value of any remaining savings.
- If an employee receives more than one annual statement from us a year, it could mean they’ve ended up with two different customer numbers. This means they may pay the annual charge twice, and may not receive their full rebate entitlement. If this has happened, find out how to correct the issue.
- This information is based on members who are on our standard charges. Members can find out more about their exact charges in their Online Account. Once logged in, they’ll need to go to ‘Manage my pension’, followed by ‘Charges’.
For more detailed information, see the ‘You might be wondering…’ section.
What this means for an employee
How much is in an employee’s pot?
How the rebate is calculated
Change the pot size in the calculator above to see how the rebate is worked out.
Up to £3k | Over £3k and up to £10k | Over £10k and up to £25k | Over £25k and up to £50k | Over £50k | Total | |
---|---|---|---|---|---|---|
The part of the savings… | £0@0.0% | £0@0.1% rebate | £0@0.2% rebate | £0@0.25% rebate | £0@0.3% rebate | £0.00 |
Estimated rebate for each band: | £0.00 | £0.00 | £0.00 | £0.00 | £0.00 | £0.00 |
Savings in each band: | Rebate in each band: | |
---|---|---|
Up to £3k | £0@0.0% | £0.00 |
>£3k to £10k | £0@0.1% rebate | £0.00 |
>£10k to £25k | £0@0.2% rebate | £0.00 |
>£25k to £50k | £0@0.25% rebate | £0.00 |
Over 50k | £0@0.3% rebate | £0.00 |
Total | £0.00 | £0.00 |
Our assumptions:
- Pounds and pence figures are for illustrative purposes only, the actual management charge and rebate may be slightly more or less than the figures quoted due to fluctuations in the unit price.
- The estimated management charge shown does not incorporate projected unit price or inflation increases during the Scheme year.
- The estimated rebate given is for a member who does not transfer in any other pension savings, and/or does not access their pot.
- For sums of £18,000 and above, the estimated rebate given may differ from the total rebate that would be applied due to rounding.
- This information is based on members who are on our standard charges. Members can find their exact charges in their Online Account. Once logged in they’ll need to go to ‘Manage my pension’, followed by ‘Charges’.
Help your employees to save more
Are you already with The People’s Pension?
See the AMC fall
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Communication templates to help employees understand how to get a bigger rebate.
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By choosing The People’s Pension you’ll be joining one of the largest master trusts in the UK, receive excellent customer service from our UK based contact centre and help your employees save more for later life.
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Your employee’s savings could potentially be boosted by thousands of pounds.
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Still not sure?
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You might be wondering…
How is the management charge rebate calculated?
The rebate is calculated at the end of the rebate period based on the fund value2 of the member’s pot on that date as set out in the ‘How the management charge rebate works‘ section above. The amount applied will vary depending on the number of days in each rebate period.
They’ll receive this a few days after the end of each rebate period based on the unit price on the date it’s added, although this could be longer in unforeseen circumstances3. If they request to take their money, or transfer their savings to another provider before the rebate is applied, they may not receive the rebate.
Here’s an example…
For example, if an employee has £15,000 in their pension pot, their rebate will be calculated as follows:
- The first £3,000 gets no rebate
- The next £7,000 gets a rebate of 0.1% – equivalent to £7 a year
- The final £5,000 gets a rebate of 0.2% – equivalent to £10 a year
- For a 31-day rebate period, the rebate this employee receives would be £17 x (31/365) = £1.44.
This information is based on members who are on our standard charges. Members can find out more about their exact charges in their Online Account. Once logged in, they’ll need to go to ‘Manage my pension’, followed by ‘Charges’.
2 The fund value used to calculate the rebate on a member’s management charge includes all savings, including monies held in flexi-access drawdown. Receipt of the rebate and its amount will depend on employee activity during each rebate period. See ‘How is the rebate affected when an employee transfers money in’ and ‘How is the rebate affected when an employee takes money out’ sections for more information. The fund value also includes previous rebates.
3 If the price of the fund falls between the date of calculation and the date the rebate is applied, then the pounds and pence rebate will buy more units than at the calculation date. And if the fund price rises, it will buy less units.
How will the rebate be added to a employee’s pot?
The value of the rebate will be used to purchase units in the fund or funds that the employee or member holds. If they hold more than one fund, units will be purchased proportionately, based on their value, across each of the funds held.
Do new members qualify for a rebate?
To qualify for a rebate, a member’s money must be invested by the first day of a rebate period. So, when they first join The People’s Pension, they won’t receive a rebate at the end of their first rebate period.
Only unitised funds are included in the charge calculation, and units must be held on the first day of the rebate period to receive a rebate. This means they’ll not start to qualify for a rebate until after the end of the opt-out period.
How is the rebate affected when an employee takes money out?
When an employee or member takes all their money out, they’ll not receive a rebate at the end of the rebate period, as they’ll have no savings remaining at that time.
If they take part of their money out, future rebates will be worked out on the value of their remaining savings. Typically, if their pot remains in excess of £3,000, then they’ll still receive a rebate.
Here’s an example…
For example, if the employee had a pension pot of £15,000, they’d have benefited from a rebate of 0.2% on £5,000 of this and 0.1% on £7,000. If they then take £7,000 and their fund value reduces to £8,000 by the end of the next rebate period, the member will then get a rebate of 0.1% on £5,000 of their savings.
How is the rebate affected when an employee transfers money in?
When an employee’s (or member’s) transfer from another scheme is completed, the value of that transfer will not be included when calculating the rebate at the end of that rebate period. It will be included in subsequent rebate periods.
This is because any transferred amount has to be invested before the start of any rebate period in order to qualify for a rebate for that period.
What will employees see in their Online Account?
Your employees will see the amount of rebate applied to their pension pot within the ‘Transactions’ tab of their Online Account. This will be shown monthly in pounds and pence.
If an employee or member doesn’t see a rebate in their ‘Transactions’ tab, it may be that they don’t have enough money in their pot to qualify for a rebate just yet. A rebate on the management charge only applies on savings over £3,000.
The first rebate we added to qualifying pots covered a 6-month rebate period from 17 February 2020 to 16 August 2020. From September 2020 the rebate was added monthly, so members may have seen a larger amount in the first rebate.
They’ll also see the annual charge in this ‘Transactions’ tab when it’s applied.
What happens with the AMC if an employee dies?
The AMC will continue to be applied until the pot is claimed.
This means we’ll continue to apply the annual charge, the 0.5% management charge, and the rebate on the management charge until the pot is claimed.
The employee’s (or member’s) fund will not receive a rebate for the rebate period in which the claim is paid to their beneficiaries.
What happens to the rebate if an incorrect contribution is added?
If the value of an employee’s (or member’s) savings is wrong due to, for example, incorrect contributions or unit pricing errors and we’re required to carry out any corrective actions, we’ll refund any overpayment of our management charge and ensure your employees pay no more in management charges than if the error had not occurred.
No amendments will be made to any rebate of management charges applied to a member’s pension pot, prior to the error correction date.
Are there any other costs an employee pays?
Costs will also be incurred by investment funds when assets are bought, sold or lent by the fund. These are called ‘transaction costs’. The employee’s pension pot is indirectly affected by such costs as these reduce the net investment returns of the funds.
Investment returns are automatically added to the employee’s (or member’s) pot through the unit price. These returns include the transaction costs.
How did you work out that your members could save ‘thousands of pounds more’?
This projection is based on our charging structure of a flat 0.5% management charge, and using the following assumptions:
- an employee member aged 35 with a retirement age of 68
- a starting fund of £15,000
- earnings of £30,000 per annum
- gross contributions at 8% (of qualifying earnings for 2023/24 financial year)
- investment returns at 5% per annum
- inflation at 2.5% per annum.
Help your employees understand our charge
Want to communicate with your employees about their pension and share the benefits they’re getting from you through the scheme?
Use our videos, flyers and templates to explain our annual management charge to your employees.
Our communications toolkitI’m an adviser
Pension management charges
As we’re run by a not-for-profit organisation, we want to help our members (your clients’ employees) save more2 by reducing the rate we charge them as their savings increase.
We do this by way of a rebate on the management charge.
The inclusion of the annual charge part of the AMC creates a fairer charge as the costs are spread more equitably across all members.
What makes our charge different?
- The same charge rate applies to all funds, even if a member moves out of the default arrangement.
- The charge is applied at a member level so anyone, regardless of their employer, can benefit from the same great rates.
- A reduction in the management charge rate by applying a rebate.
1£1.5 million is the combined total of the rebate on all of our members’ pots each month in 2023.
2 See the ‘You might be wondering…’ section below for details on how we worked out that members could save ‘thousands of pounds more’.
You and your clients can download this video from our communications toolkit and share it with members to help them understand our annual management charge.
Our annual management charge (AMC)
A member’s AMC is made up of 3 parts
Annual charge
An annual charge of £4.50 deducted during the scheme year.
Management charge
A management charge of 0.5% of the value of their pension pot each year.
Rebate
A rebate on some of their management charge for savings over £3k.
Annual management charge explained
How the annual charge works
If a member has money saved with us on 1 April each year, the £4.50 annual charge will be deducted from their pension pot by the end of the Scheme year – which runs from 1 April to 31 March. If they join after 1 April, they won’t pay the annual charge until the following Scheme year.
If they leave The People’s Pension before the annual charge is taken, it’ll not be deducted.
No annual charge is taken from flexi-access drawdown accounts – the annual charge will only be taken from the member’s main pension pot.
The annual charge is not taken from pots below £104.50 when the charge is calculated.
How the management charge works
To put the 0.5% management charge another way, it’s just 50 pence a year for every £100 in a member’s pot.
With us, members pay the same management charge regardless of the fund(s) they’re invested in – unlike some pension providers who charge different rates for different funds.
The 0.5% management charge is deducted automatically through a reduction in the unit price of the fund(s) that a member’s invested in. Unit prices are calculated daily, and the charge is reflected in the value of their pension savings.
The exact calculation for working out the management charge can be found in our knowledge base.
How the management charge rebate works
The level of rebate a member receives depends on how much is in their pot. They’ll receive a rebate on the management charge of between 0.1% and 0.3% based on the value of their pension pot when the rebate is calculated.
For the part of their savings:
- up to £3,000, no rebate is given
- over £3,000 and up to £10,000, we’ll give back 0.1%
- over £10,000 and up to £25,000, we’ll give back 0.2%
- over £25,000 and up to £50,000, we’ll give back 0.25%
- over £50,000, we’ll give back 0.3%.
This all happens automatically and members will see the rebate monthly in their Online Account.
Please note:
- The minimum we can give back as a rebate is 1 pence.
- If a member takes their money out, future rebates will be worked out on the value of any remaining savings.
- If a member receives more than one annual statement from us a year, it could mean they’ve ended up with two different customer numbers. This means they may pay the annual charge twice, and may not receive their full rebate entitlement. If this has happened, find out how to correct the issue.
This information is based on members who are on our standard charges. Members can find out more about their exact charges in their Online Account. Once logged in, they’ll need to go to ‘Manage my pension’, followed by ‘Charges’.
For more detailed information, see the ‘You might be wondering…’ section
What this means for a member
How much is in a member’s pot?
How the rebate is calculated
Change the pot size in the calculator above to see how the rebate is worked out.
Up to £3k | Over £3k and up to £10k | Over £10k and up to £25k | Over £25k and up to £50k | Over £50k | Total | |
---|---|---|---|---|---|---|
The part of the savings… | £0@0.0% | £0@0.1% rebate | £0@0.2% rebate | £0@0.25% rebate | £0@0.3% rebate | £0.00 |
Estimated rebate for each band: | £0.00 | £0.00 | £0.00 | £0.00 | £0.00 | £0.00 |
Savings in each band: | Rebate in each band: | |
---|---|---|
Up to £3k | £0@0.0% | £0.00 |
>£3k to £10k | £0@0.1% rebate | £0.00 |
>£10k to £25k | £0@0.2% rebate | £0.00 |
>£25k to £50k | £0@0.25% rebate | £0.00 |
Over 50k | £0@0.3% rebate | £0.00 |
Total | £0.00 | £0.00 |
Our assumptions:
- Pounds and pence figures are for illustrative purposes only, the actual management charge and rebate may be slightly more or less than the figures quoted due to fluctuations in the unit price.
- The estimated management charge shown does not incorporate projected unit price or inflation increases during the Scheme year.
- The estimated rebate given is for a member who does not transfer in any other pension savings, and/or does not access their pot.
- For sums of £18,000 and above, the estimated rebate given may differ from the total rebate that would be applied due to rounding.
- This information is based on members who are on our standard charges. Members can find their exact charges in their Online Account. Once logged in they’ll need to go to ‘Manage my pension’, followed by ‘Charges’.
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You might be wondering…
How is the management charge rebate calculated?
The rebate is calculated at the end of the rebate period based on the fund value2 of the member’s pot on that date as set out in the ‘How the management charge rebate works‘ section above. The amount applied will vary depending on the number of days in each rebate period.
They’ll receive this a few days after the end of each rebate period based on the unit price on the date it’s added, although this could be longer in unforeseen circumstances3. If they request to take their money, or transfer their savings to another provider before the rebate is applied, they may not receive the rebate.
Here’s an example…
For example, if a member has £15,000 in their pension pot, their rebate will be calculated as follows:
- The first £3,000 gets no rebate
- The next £7,000 gets a rebate of 0.1% – equivalent to £7 a year
- The final £5,000 gets a rebate of 0.2% – equivalent to £10 a year
- For a 31-day rebate period, the rebate this member receives would be £17 x (31/365) = £1.44.
This information is based on members who are on our standard charges. Members can find out more about their exact charges in their Online Account. Once logged in, they’ll need to go to ‘Manage my pension’, followed by ‘Charges’.
2 The fund value used to calculate the rebate on a member’s management charge includes all savings, including monies held in flexi-access drawdown. Receipt of the rebate and its amount will depend on member activity during each rebate period. See ‘How is the rebate affected when a member transfers money in’ and ‘How is the rebate affected when a member takes money out’ sections for more information. The fund value also includes previous rebates.
3 If the price of the fund falls between the date of calculation and the date the rebate is applied, then the pounds and pence rebate will buy more units than at the calculation date. And if the fund price rises, it will buy less units.
How will the rebate be added to a member’s pot?
The value of the rebate will be used to purchase units in the fund or funds that the member holds. If they hold more than one fund, units will be purchased proportionately, based on their value, across each of the funds held.
Do new members qualify for a rebate?
To qualify for a rebate, their money must be invested by the first day of a rebate period. So, when they first join The People’s Pension, they won’t receive a rebate at the end of their first rebate period.
Only unitised funds are included in the charge calculation, and units must be held on the first day of the rebate period to receive a rebate. This means they’ll not start to qualify for a rebate until after the end of the opt-out period.
How is the rebate affected when a member takes money out?
When a member takes all their money out, they’ll not receive a rebate at the end of the rebate period, as they’ll have no savings remaining at that time.
If they take part of their money out, future rebates will be worked out on the value of their remaining savings. Typically, if their pot remains in excess of £3,000, then they’ll still receive a rebate.
Here’s an example…
For example, if the member had a pension pot of £15,000, they’d have benefited from a rebate of 0.2% on £5,000 of this and 0.1% on £7,000. If they then take £7,000 and their fund value reduces to £8,000 by the end of the next rebate period, the member will then get a rebate of 0.1% on £5,000 of their savings.
How is the rebate affected when a member transfers money in?
When a member’s transfer from another scheme is completed, the value of that transfer will not be included when calculating the rebate at the end of that rebate period. It will be included in subsequent rebate periods.
This is because any transferred amount has to be invested before the start of any rebate period in order to qualify for a rebate for that period.
What will members see in their Online Account?
Members will see the amount of rebate applied to their pension pot within the ‘Transactions’ tab of their Online Account. This will be shown monthly in pounds and pence.
If a member doesn’t see a rebate in their ‘Transactions’ tab, it may be that they don’t have enough money in their pot to qualify for a rebate just yet. A rebate on the management charge only applies on savings over £3,000.
The first rebate we added to qualifying pots covered a 6-month rebate period from 17 February 2020 to 16 August 2020. From September 2020 the rebate was added monthly, so members may have seen a larger amount in the first rebate.
They’ll also see the annual charge in this ‘Transactions’ tab when it’s applied.
What happens with the AMC if a member dies?
The AMC will continue to be applied until the pot is claimed.
This means we’ll continue to apply the annual charge, the 0.5% management charge, and the rebate on the management charge until the pot is claimed.
The member’s fund will not receive a rebate for the rebate period in which the claim is paid to their beneficiaries.
What happens to the rebate if an incorrect contribution is added?
If the value of a member’s savings is wrong due to, for example, incorrect contributions or unit pricing errors and we are required to carry out any corrective actions, we’ll refund any overpayment of our management charge and ensure members pay no more in management charges than if the error had not occurred.
No amendments will be made to any rebate of management charges applied to a member’s pension pot, prior to the error correction date.
Are there any other costs a member pays?
Costs will also be incurred by investment funds when assets are bought, sold or lent by the fund. These are called ‘transaction costs’. The member’s pension pot is indirectly affected by such costs as these reduce the net investment returns of the funds.
Investment returns are automatically added to the member’s pot through the unit price. These returns include the transaction costs.
How did you work out that members could save ‘thousands of pounds more’?
This projection is based on our charging structure of a flat 0.5% management charge, and using the following assumptions:
- a member aged 35 with a retirement age of 68
- a starting fund of £15,000
- earnings of £30,000 per annum
- gross contributions at 8% (of qualifying earnings for 2023/24 financial year)
- investment returns at 5% per annum
- inflation at 2.5% per annum.
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Not a member, employer or adviser? Here’s some general information about how our annual management charge works for members.
Pension management charges
Every workplace pension scheme charges members for looking after their money. You might hear this called an annual management charge or AMC for short. Our charge is applied at a member level rather than scheme level, so everyone has access to the same great rate.
As we’re run by a not-for-profit organisation, we want to help our members save thousands of pounds more2 by reducing the rate we charge them as their savings increase.
What the member charge pays for
Among other things, it pays for:
- Expert decision making on where members’ money is invested – so their money can grow for their future.
- Access to our UK-based telephone support team – on hand to answer any questions they have.
- Strong scheme governance through independent trustees who ensure the scheme operates in the members’ interests.
- Maintaining members’ Online Account and calculators which can help them manage their pension savings.
- Day-to-day running costs – such as producing annual statements.
1 £1.5 million is the combined total of the rebate on all of our members’ pots each month in 2023.
2 See the ‘You might be wondering…’ section below for details on how we worked out that members could save ‘thousands of pounds more’.
Our annual management charge (AMC)
A member’s AMC is made up of 3 parts
Annual charge
An annual charge of £4.50 deducted during the scheme year.
Management charge
A management charge of 0.5% of the value of their pension pot each year.
Rebate
A rebate on some of their management charge for savings over £3k.
Annual management charge explained
How the annual charge works
If a member has money saved with us on 1 April each year, the £4.50 annual charge will be deducted from their pension pot by the end of the Scheme year – which runs from 1 April to 31 March. If they join after 1 April, they won’t pay the annual charge until the following Scheme year.
If they leave The People’s Pension before the annual charge is taken, it’ll not be deducted.
No annual charge is taken from flexi-access drawdown accounts – the annual charge will only be taken from a member’s main pension pot.
The annual charge is not taken from pots below £104.50 when the charge is calculated.
How the management charge works
To put the 0.5% management charge another way, it’s just 50 pence a year for every £100 in a member’s pot.
With us, members pay the same management charge regardless of the fund(s) they’re invested in – unlike some pension providers who charge different rates for different funds.
The 0.5% management charge is deducted automatically through a reduction in the unit price of the fund(s) that a member’s invested in. Unit prices are calculated daily, and the charge is reflected in the value of their pension savings.
The exact calculation for working out the management charge can be found in our knowledge base.
How the management charge rebate works
The level of rebate a member receives depends on how much is in their pot. They’ll receive a rebate on the management charge of between 0.1% and 0.3% based on the value of their pension pot when the rebate is calculated.
For the part of their savings:
- up to £3,000, no rebate is given
- over £3,000 and up to £10,000, we’ll give back 0.1%
- over £10,000 and up to £25,000, we’ll give back 0.2%
- over £25,000 and up to £50,000, we’ll give back 0.25%
- over £50,000, we’ll give back 0.3%.
This all happens automatically and members will see the rebate monthly in their Online Account.
Please note:
This information is are based on members who are on our standard charges. Members can find out more about their exact charges in their Online Account. Once logged in, they’ll need to go to ‘Manage my pension’, followed by ‘Charges’.
- The minimum we can give back as a rebate is 1 pence.
- If a member takes their money out, future rebates will be worked out on the value of any remaining savings.
- If a member receives more than one annual statement from us a year, it could mean they’ve ended up with two different customer numbers. This means they may pay the annual charge twice, and may not receive their full rebate entitlement. If this has happened, find out how to correct the issue.
For more detailed information, see the ‘You might be wondering…’ section.
What this means for a member
How much is in a member’s pot?
How the rebate is calculated
Change the pot size in the calculator above to see how the rebate is worked out.
Up to £3k | Over £3k and up to £10k | Over £10k and up to £25k | Over £25k and up to £50k | Over £50k | Total | |
---|---|---|---|---|---|---|
The part of the savings… | £0@0.0% | £0@0.1% rebate | £0@0.2% rebate | £0@0.25% rebate | £0@0.3% rebate | £0.00 |
Estimated rebate for each band: | £0.00 | £0.00 | £0.00 | £0.00 | £0.00 | £0.00 |
Savings in each band: | Rebate in each band: | |
---|---|---|
Up to £3k | £0@0.0% | £0.00 |
>£3k to £10k | £0@0.1% rebate | £0.00 |
>£10k to £25k | £0@0.2% rebate | £0.00 |
>£25k to £50k | £0@0.25% rebate | £0.00 |
Over 50k | £0@0.3% rebate | £0.00 |
Total | £0.00 | £0.00 |
Our assumptions:
- Pounds and pence figures are for illustrative purposes only, the actual management charge and rebate may be slightly more or less than the figures quoted due to fluctuations in the unit price.
- The estimated management charge shown does not incorporate projected unit price or inflation increases during the Scheme year.
- The estimated rebate given is for a member who does not transfer in any other pension savings, and/or does not access their pot.
- For sums of £18,000 and above, the estimated rebate given may differ from the total rebate that would be applied due to rounding.
- This information is based on members who are on our standard charges. Members can find their exact charges in their Online Account. Once logged in they’ll need to go to ‘Manage my pension’, followed by ‘Charges’.
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You might be wondering…
How is the management charge rebate calculated?
The rebate is calculated at the end of the rebate period based on the fund value2 of the member’s pot on that date as set out in the ‘How the management charge rebate works‘ section above. The amount applied will vary depending on the number of days in each rebate period.
They’ll receive this a few days after the end of each rebate period based on the unit price on the date it’s added, although this could be longer in unforeseen circumstances3. If they request to take their money, or transfer their savings to another provider before the rebate is applied, they may not receive the rebate.
Here’s an example…
For example, if a member has £15,000 in their pension pot, their rebate will be calculated as follows:
- The first £3,000 gets no rebate
- The next £7,000 gets a rebate of 0.1% – equivalent to £7 a year
- The final £5,000 gets a rebate of 0.2% – equivalent to £10 a year
- For a 31-day rebate period, the rebate this member receives would be £17 x (31/365) = £1.44.
This information is based on members who are on our standard charges. Members can find out more about their exact charges in their Online Account. Once logged in, they’ll need to go to ‘Manage my pension’, followed by ‘Charges’.
2 The fund value used to calculate the rebate on a member’s management charge includes all savings, including monies held in flexi-access drawdown. Receipt of the rebate and its amount will depend on member activity during each rebate period. See ‘How is the rebate affected when a member transfers money in’ and ‘How is the rebate affected when a member takes money out’ sections for more information. The fund value also includes previous rebates.
3 If the price of the fund falls between the date of calculation and the date the rebate is applied, then the pounds and pence rebate will buy more units than at the calculation date. And if the fund price rises, it will buy less units.
How will the rebate be added to a member’s pot?
The value of the rebate will be used to purchase units in the fund or funds that the member holds. If they hold more than one fund, units will be purchased proportionately, based on their value, across each of the funds held.
Do new members qualify for a rebate?
To qualify for a rebate, a member’s money must be invested by the first day of a rebate period. So, when they first join The People’s Pension, they won’t receive a rebate at the end of their first rebate period.
Only unitised funds are included in the charge calculation, and units must be held on the first day of the rebate period to receive a rebate. This means they’ll not start to qualify for a rebate until after the end of the opt-out period.
How is the rebate affected when a member takes money out?
When the member takes all their money out, they’ll not receive a rebate at the end of the rebate period, as they’ll have no savings remaining at that time.
If they take part of their money out, future rebates will be worked out on the value of their remaining savings. Typically, if their pot remains in excess of £3,000, then they’ll still receive a rebate.
Here’s an example…
For example, if they had a pension pot of £15,000, they’d have benefited from a rebate of 0.2% on £5,000 of this and 0.1% on £7,000. If they then take £7,000 and their fund value reduces to £8,000 by the end of the next rebate period, the member will then get a rebate of 0.1% on £5,000 of their savings.
How is the rebate affected when a member transfers money in?
When a member’s transfer from another scheme is completed, the value of that transfer will not be included when calculating the rebate at the end of that rebate period. It will be included in subsequent rebate periods.
This is because any transferred amount has to be invested before the start of any rebate period in order to qualify for a rebate for that period.
More about transferring other pensions into The People’s Pension
What will members see in their Online Account?
Members will see the amount of rebate applied to their pension pot within the ‘Transactions’ tab of their Online Account. This will be shown monthly in pounds and pence.
If a member doesn’t see a rebate in their ‘Transactions’ tab, it may be that they don’t have enough money in their pot to qualify for a rebate just yet. A rebate on the management charge only applies on savings over £3,000.
The first rebate we added to qualifying pots covered a 6-month rebate period from 17 February 2020 to 16 August 2020. From September 2020 the rebate was added monthly, so members may have seen a larger amount in the first rebate.
They’ll also see the annual charge in this ‘Transactions’ tab when it’s applied.
What happens with the AMC if a member dies?
The AMC will continue to be applied until the pot is claimed.
This means we’ll continue to apply the annual charge, the 0.5% management charge, and the rebate on the management charge until the pot is claimed.
The member’s fund will not receive a rebate for the rebate period in which the claim is paid to their beneficiaries.
What happens to the rebate if an incorrect contribution is added?
If the value of a member’s savings is wrong due to, for example, incorrect contributions or unit pricing errors and we’re required to carry out any corrective actions, we’ll refund any overpayment of our management charge and ensure members pay no more in management charges than if the error had not occurred.
No amendments will be made to any rebate of management charges applied to a member’s pension pot, prior to the error correction date.
Are there any other costs a member pays?
Costs will also be incurred by investment funds when assets are bought, sold or lent by the fund. These are called ‘transaction costs’. The member’s pension pot is indirectly affected by such costs as these reduce the net investment returns of the funds.
Investment returns are automatically added to the member’s pot through the unit price. These returns include the transaction costs.
How did you work out that members could save ‘thousands of pounds more’?
This projection is based on our charging structure of a flat 0.5% management charge, and using the following assumptions:
- a member aged 35 with a retirement age of 68
- a starting fund of £15,000
- earnings of £30,000 per annum
- gross contributions at 8% (of qualifying earnings for 2023/24 financial year)
- investment returns at 5% per annum
- inflation at 2.5% per annum.
Keep up to date with our latest developments
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