Royal Grammar School

Newcastle

    RGS Support Staff Pension Plan

    This page is for members of the RGS Support Staff Pension Plan to be able to access information about the Plan specifically concerning the default fund, charges and transaction costs. All this information is contained in the Chair’s statement and the Annual Report to members. Copies of the statement and report are available here to down load.

    Default Fund
    The default investment arrangement is provided for members who join the Scheme and do not choose an investment option for their funds. Members can also choose to invest in the default investment arrangement which is set up by the Trustees. The default arrangement for the Scheme is the Clerical Medical Balanced Fund.
    The Balanced Fund aims to achieve long term capital growth by gaining exposure predominantly to UK and overseas equities with flexibility to gain a minority exposure to commercial property and fixed interest stocks.

    Core Financial Transactions
    The Trustees have a specific duty to secure that core financial transactions (including the investment of contributions, transfer of member assets into and out of the Scheme, transfers between different investments within the Scheme and payments to and in respect of members) relating to DC schemes are processed promptly and accurately. These transactions are undertaken on behalf of the Trustees by the Scheme administrator, and investment manager Clerical Medical. 
    The Trustees continue to work with the Scheme administrator to develop reporting covering how quickly and effectively the core financial transactions are completed. Any mistakes or delays will be investigated thoroughly and action taken to put things right as quickly as possible. In this reporting period there have been no material administration service issues which need to be reported here by the Trustees.
    The Trustees are developing the processes and controls to ensure they are suitable to achieve these objectives.

    Charges and Transaction Costs
    The new governance rules require the Trustees to make an assessment of charges and transactions costs borne by the DC scheme members and the extent to which those charges and costs represent good value for money for members. 
    The scheme has two charging structures relating to ‘Old World’ units and ‘New World’ Units.
    ‘Old World’ units relate to contributions made to the scheme up to the 31st August 2004. The only charge is a 1% per annum Annual Management Charge (AMC). ‘New World’ units relate to contributions made to the scheme after the 31st August 2004. The only charge is a 0.45% per annum Annual Management Charge (AMC) and thus is the charge that all new members incur.
    All ‘Old World’ members are invested in the With Profits fund, as such all members using the default arrangement of the Balanced fund are incurring ‘New World’ charges i.e. 0.45% per annum.

    Clerical Medical have 61 funds available to members and also include six Lifestyle funds. The Trustees permit members to choose any of the funds available as this provides increased flexibility to align with member requirements as an alternative to the default arrangement. All funds are single priced and attract annual management charges of 0.45% to 1.3% (see SIP). The Trustees were satisfied that the charges on the default fund are within the prescribed limit and that the charges on the other funds are good value.  

    Chair's-statement-Final-2019

    RGS DC Statement of Investment Principles

    SIP ESG DC Addendum Final

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