Norwich Union is to roll out a group personal pension product (GPP) with no initial charge or bid/of...
Norwich Union is to roll out a group personal pension product (GPP) with no initial charge or bid/offer spread and an annual management charge ranging between 0.5% and 1%.
The product will offer a choice of 16 investment funds, including with-profits, UK growth, property and balanced managed with the annual management charge varying depending on the size of contributions.
Norwich Union is being retained as the UK life and pensions brand for CGNU, the group created by the merger between Norwich Union and CGU.
The GPP will also offer brokers the option have fund based commission of 0.2% which would take the standard annual management charge to 1.2%. The allocation rate for this option will be 100%.
A level commission option is also offered, with for example a 4% level commission payment taking the allocation rate down to 96%, while the annual management charge would be 1%.
For schemes with an average contribution per member of at least £350 a month the annual management charge would be 0.5%.
Norwich Union is looking to market the scheme to firms which can produce an average contribution per member of at least £100 per month.
The product can also be tailored to suit individual employers by offering features such as waiver of contribution benefit and options for employees to protect their fund closer to retirement such as phased switching.
The GPP also allows the employer to offer different pensions benefits to various categories of employee. For example, the employer might offer contributions of 8% of earnings to senior managers and a retirement age of 50 while the salesforce might be offered employer contributions of 5% of earnings and a retirement age of 55. Norwich Union is to provide a worksite marketing pack with a view to encouraging employees to join the scheme.
This will include a video to highlight the benefits of pension planning and posters outlining scheme details to be displayed around company noticeboards.
The group will produce mailers to be included with payslips to remind employees about making pension contributions. The life office is to offer online illustrations for its GPP for brokers as well as online plan details.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till