Costs&chargesThis document explains the costs and charges relating to Auto Enrolment and has been created in accordance with the National Association of Pension Fund’s Pension Charges Made Clear Code of Conduct.

Transparency, to us, means communicating with openness and explaining costs associated with our pensions in a straightforward manner.

We are confident that our low fees and prompt enrolment process make us a preferred Auto Enrolment provider. To back this up, we have designed this document to help you compare our proposition versus those of other providers.

If you would like to clarify any of the points within our charging structure then we encourage you to get in tough via our contact details on the back page.

Costs and charges | NOW: Pensions 2

Summary of Charges Your employees will be charged for being members of the pension. Below we have set out the types and amounts of charges your employees will pay in our standard fund offering. Please note that these charges may change over time, however our intent is, when possible, to reduce or eliminate the need for an administration charge in the future. As the employer, you will not have any charges to pay unless you choose to; employers have the option of paying the monthly administration charge.

Standard Charges

Percentage of employee’s pot taken as a charge for investment management 0.3% of pot each year

Fixed charge per year to cover administration costs From £3.60 to £18 each year based on salary level on entry

Extra charges when certain events occur

Extra percentage of employee’s pot taken as a charge when the employee stops contributing before pension age

Nil - Deferred member charges are capped at a total of 0.5% of the Pot

Extra percentage of employee’s pot taken if employee transfers pension to another provider Nil

Transaction CostsCosts will also be incurred when investing in different stocks and securities. These are often called transaction costs. They are an essential part of generating investment returns on behalf of scheme members. The chart below shows the average cost the default fund incurred over the past three years in broker commissions and stamp duty/transfer taxes. In addition, there is a difference between the buying and selling prices of investments, which is called the dealing spread.

Average costs of commission Nil

Average stamp duty and/or transfer taxes N/A New Fund

Estimated average dealing spread N/A New Fund

Fund proportions Gross Charges30 year Charge and Fund Value(Fig 4)(Fig 3)

30 year Charge and Fund Value5 year Charge and Fund Value(Fig 2)(Fig 1)

Costs and charges | NOW: Pensions 3

What does this mean for your employees?

These figures are based on standard assumptions about things like investment growth and inflation. The actual effect of charges on your workforce will depend on things like their age and their earnings.

In this scenario the individual contributes 8% of their salary (5% from the employee and 3% from the employer) for 5 years after this time they become a deferred member (still charged at same rate as when a contributing member). The charts show the percentage of the individuals fund taken as charges and the value left for the employee.

In this scenario this individual contributes 8%pa of their salary (5% from the employee and 3% from the employer) for a total of 30 years. Figure 3 show the percentage of the individuals fund taken as charges and the value left for the employee. Figure 4 shows how the fund is broken down by contributions, investment growth and tax (pre charges).

Assumptions– Starting salary £26,200 (average

salary UK)– 5% Annual Fund

Growth– 4% Annual Salary

Growth

Assumptions– Starting salary £26,200 (average

salary UK)– 5% Annual Fund

Growth– 4% Annual Salary

Growth

Charge deducted3.20%

Charge deducted

1.41%

Fund value left for employee

96.80%

Fund value left for employee

98.59%

Tax Benefit

6.00%

Investment Growth

49.00%

Employer Contribution

19.00%

Fund value left for employee

94.31%

Employee Contribution

26.00%

Charge deducted

5.69%

Total Fund Value£230,605.72

Costs and charges | NOW: Pensions 4

What services are included in the charge?

Information and advice to you, the employer

Helping you implement automatic enrolment(*subject to certain limitations)

Communications to employees

Bespoke microsite for employees and employers

Individualised online accounts for scheme members

Telephone helpline for employees

Face-to-face help for employees

Setting up and running the scheme

Scheme-specific governance framework

Scheme-specific administration team

Automatic enrolment record-keeping and support compliance service

We can help you assess your workforce and deal with all the required communications to enable you meet your AE obligations – our systems manage this whole process end to end and provide compliance reports to enable you meet your reporting obligations.

Website includes enquiry service, and some tailored branding options.

We offer full helpline facilities to support members unable to access their account on-line.

We offer general site presentations for employers based on volume of members.

All employers are invited to participate in an employer forum. This gives employers direct access to the Trustees and allows us to share best practises for the benefit of all.

Employers have Direct access to the scheme administrators to ensure that there is easy and effective support for members when required.

We provide full compliance and audit reporting of AE obligations.

Members have full access to a site to view their pension and make changes to manage their pension account.

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Included in the charge

Employee has to

pay extra

Employerhas to

pay extra Notes

*

More overleaf… >

We are party to and invest in accordance with the (UNPRI) UN Principles of Responsible Investing across all our funds.

A Sharia fund is available on request for Employers that would like this fund to be offered to Members.

See below…

We offer members access to a whole of market annuity service provider will deliver the best rates to meet the individual’s personal circumstances including lifestyle and impaired life options.

We do not consider members interests are best serviced by limiting the option to a closed group of annuity providers.

On-line facility to provide the required information at no charge.

On-line facility to manage the process simply and efficiently at no charge.

Included in the charge

Employee has to

pay extra

Employerhas to

pay extra Notes

*

Information and advice to you, the employer

Managing your employees’ investments

Monitoring suitability of the default fund

Availability of specialist funds upon request

Ethical funds

Sharia-compliant funds

Costs of one-off services (per member)

Splitting a pension on divorce

Transfers in and out

Supporting employees at retirement

Adviser to help employees find the best annuity

Selected panel of annuity companies

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The fund is governed by the Trustees who monitor the performance of the investment manager. The Board of Trustees.

What services are included in the charge? (continued)

Costs and charges | NOW: Pensions 5

Costs and charges | NOW: Pensions 6

What makes us unique?

Why should you choose us?

Contact usYou can get in touch with

us by contacting:

Jerry Gandhi –Chief Operating Officer

jerry@nowpensions.com

Transparent Experienced ProtectiveWe have no hidden fees or charges; no complicated investment choices – just a proven single strategy with three funds; a low administrative fee and a straightforward Auto Enrolment process.

We are backed by ATP – Denmark’s leading mutual pension provider. For the last 45 years they have lead the market through successful service delivery and investment performance on behalf of their 4.7m members.

Our trust governance structure ensures that members’ interests are protected at all times. Our board has the option and obligation to replace organisations that are not delivering the required service or fail to meet the performance measures required.

Our processes are lean and efficient, using the latest technology to keep costs down. We pool investments and make sure that members only pay for services that add value to their pensions.

We keep things simple by relieving you of the burden of choice. We make it easy for you to keep an eye on things and monitor your pension scheme.

High quality and highly experienced our team’s focus is fully aligned to the interests of our members.

Smarter Simpler Better