Some of the Scheme’s Annual Management Charges (AMCs) are changing

On or after 8 October 2021, the AMCs for four of the funds your Personal Account may be invested in are changing. Our aim is to make sure the AMCs stay broadly in line with those charged by individual fund managers. The funds affected and their current and new AMCs are shown below.

What is an Annual Management Charge (AMC)?

These are the charges that cover the cost of managing your pension investments.

The charge varies depending on the fund.

What are the changes?

The summary of the changes are detailed in the table below.

Fund Name	Current AMC	New AMC
PSPS Global Equity Active	0.60%	0.64%	Increase
PSPS UK Equity Active	0.35%	0.47%	Increase
PSPS Diversified Growth Active	0.65%	0.45%	Decrease
PSPS UK Equity Passive	0.15%	0.09%	Decrease

What does this mean if I’m in a lifestyle fund?

If you invest your Personal Account using one of the three Lifestyle Profiles, you may be affected.

As the three main lifestyles use some or all of these funds to varying degrees as you progress nearer to your Selected Retirement Age, there will be an impact on the combined charge. We have detailed the annual progressions for all three lifestyles in the graphs below with the new aggregate charges applying shown in black and the previous charges in yellow:

The PSPS Multi-asset Lifestyle Profile

Years to Retirement	New Estimated Total Cost % p.a	Previous Estimated Total Cost % p.a	Difference between new and old cost
Over 20 Years	0.40	0.38	0.02
20	0.40	0.38	0.02
19	0.40	0.40	0.00
18	0.40	0.42	-0.01
17	0.41	0.44	-0.03
16	0.41	0.46	-0.05
15	0.42	0.48	-0.06
14	0.42	0.50	-0.08
13	0.42	0.52	-0.10
12	0.43	0.54	-0.11
11	0.43	0.56	-0.13
10	0.44	0.58	-0.15
9	0.43	0.58	-0.14
8	0.43	0.57	-0.14
7	0.43	0.57	-0.14
6	0.43	0.56	-0.13
5	0.43	0.56	-0.13
4	0.42	0.55	-0.13
3	0.40	0.52	-0.12
2	0.38	0.49	-0.10
1	0.36	0.46	-0.09
0	0.34	0.42	-0.08

• Members who are under 20 years from retirement will experience a fall in overall costs increasing as exposure to the Diversified Growth active fund rises; and
• Members over 20 from retirement will see a very modest rise due to the increase in charges of the Global Equity and UK Equity active funds.

Over a whole career, members will likely bear a lower overall cost as the charges applying are lower in the last 20 years when pot sizes are likely to be higher.

PSPS Equity to Bonds Lifestyle — active

Years to Retirement	New Estimated Total Cost % p.a	Previous Estimated Total Cost % p.a	Difference between new and old cost
Over 10 Years	0.60	0.53	0.07
10	0.60	0.53	0.07
9	0.55	0.49	0.06
8	0.50	0.44	0.06
7	0.45	0.41	0.05
6	0.40	0.36	0.04
5	0.36	0.32	0.03
4	0.30	0.28	0.02
3	0.25	0.24	0.02
2	0.20	0.19	0.01
1	0.14	0.14	0.00
0	0.14	0.14	0.00

• Because the charges for both the Global Equity and UK Equity active funds are increasing and these funds are used for most of the Active Lifestyle glidepath, members up to one year from retirement will see a small increase in charges, with an increase for members with greater than 10 years to retirement (as their allocation has the greatest allocation, 100%, to these active equity funds).
• Members closer to retirement will experience the smallest increase.

PSPS Equity to Bonds Lifestyle — passive

Years to Retirement	New Estimated Total Cost % p.a	Previous Estimated Total Cost % p.a	Difference between new and old cost
Over 10 Years	0.13	0.15	-0.02
10	0.13	0.15	-0.02
9	0.13	0.15	-0.02
8	0.14	0.15	-0.01
7	0.14	0.15	-0.01
6	0.14	0.15	-0.01
5	0.14	0.15	-0.01
4	0.14	0.15	-0.01
3	0.14	0.15	0.00
2	0.14	0.14	0.00
1	0.14	0.14	0.00
0	0.14	0.14	0.00

Because the charges for the UK Equity Passive fund’s charges are decreasing and this fund is used for most of the years to retirement, members up to one year from retirement will see a small decrease in charges.

*The difference between new and old costs may not add up due to rounding.