Friends Life scraps active member discounts

Jenna Towler
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Provider Friends Life has scrapped active member discounts (AMD) on all its pension schemes, giving schemes the chance to move to a single charge at the current member rate.

All members - whether active or deferred - will pay the current active member charge. The change means that all future deferred members will not suffer increased charges when they move jobs or stop contributions. The minimum charge for active members is 35bps. The provider said 30bps will apply if a five-year commitment is agreed. Friends Life corporate benefits managing director Colin Williams said: "The introduction of auto- enrolment means that, under current AMD scheme structures, large numbers of employees pay higher deferred member charges on each pension they accumulate as they ...

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