By allowing members to keep their reduced annual management charge on a permanent basis
Aegon Scottish Equitable has enhanced its Group Pensions Flexi-menu proposition by allowing members who receive an active member discount to keep their reduced annual management charge on a permanent basis when they reach their 10-year plan anniversary.
According to Aegon, this reduction in annual management charge (AMC) enables employers to offer an AMC discount of between 0.25% and 0.75% to their employees who pay regular pension contributions.
To qualify for the permanent active member discount, the scheme member must be making regular contributions on the tenth anniversary of their plan’s start date, with no breaks in payments other than premium holidays of no longer of 13 months.
Previously, Aegon’s active member discount option was only available for Group Personal Pensions Flexi-menu and Group SIPP Flexi-menu schemes but Aegon is now extending this option to its new Group Stakeholder plans. Active member discount terms will also now be an option on single and transfer premiums within Group Personal Pensions and Group SIPP Flexi-menu and Group Stakeholder schemes.
Adrienne Allan, head of corporate pensions marketing at Aegon Scottish Equitable, said: Both employers and employees are our customers. Our active member discount means an employer can offer their employees a valuable pension plan throughout their working lives — and the employees don’t have to stay with that employer to benefit.
Increasingly advisers and employers are recognising that a single price for all members regardless of their contributions is less fair than rewarding those who make regular payments. Flexibility is the key and Aegon’s menu of charging options supports the differing needs of employers and their employees.