Pension Provider increase AMC

[Superb2012]

Can pension providers increase a funds AMC as they please?

I was under the impression when I bought a PRB 6 months ago through an advisor that the AMC was going to be 1% indefinitely.

Logged in to see its increases to 1.2%?

Secondly I am invested in the zurich dynamic fund in both my active pension with my current employer and in my PRB. The AMC is 0.5% in active pension and 1% in the PRB. Are zurich and advisors just in cahoots and I am getting charged double in the PRB to pay the advisors commission? Seems completely inconsistent for the exact same product.

 

[LDFerguson]

Can pension providers increase a funds AMC as they please?

Yes, but they must give any affected policyholders advance notice of any increase.

I was under the impression when I bought a PRB 6 months ago through an advisor that the AMC was going to be 1% indefinitely.

Logged in to see its increases to 1.2%?

Something odd about this as Zurich haven't increased their fund charges in the past 6 months (or 6 years for that matter). I'd ask the advisor to clarify.

Secondly I am invested in the zurich dynamic fund in both my active pension with my current employer and in my PRB. The AMC is 0.5% in active pension and 1% in the PRB.

Zurich and the other big pension companies offer a range of charging options and brokers can choose one that suits the requirement and the broker's business model. Two different brokers may use two different versions of the same Zurich Life product. In the same way, two different retailers can charge two different prices for just about any product you can think of, even if the wholesale price is the same. Charges should be disclosed to you when the product is being set up.

Separately, the broker for the current employer's pension scheme may have negotiated a lower charge product due to economies of scale if it's a group scheme.

 

[GSheehy]

My guess is that you chose a fund that had an AMC of 1% and Other Ongoing Charges of 0.2%

In an effort to be totally transparent with the annual costs the pension provider has now decided to put it in your face on their platform.

It was alway there. There is no obligation on the provider to disclose it to you but I'd say it was disclosed to you in the fund guide and now they've gone one step further. They've done this for third party funds.

This is to be welcomed.

No difference to you financially.


Gerard

www.prsa.ie