23 September 2019

Frequently Asked Questions

Frequently Asked questions – Company Stakeholder Pensions

There are a number of questions we are asked frequently about the CIS Stakeholder Pension. Check below and find out exactly what Stakeholder from CIS is all about. Fuller and more particular details are available in the Key Features section, which we strongly advise you read before applying for a CIS Stakeholder Pension.

What is a stakeholder pension?
How flexible is it?
How much can be paid into my plan each year?
What about tax?
What are the charges?
What other benefits can I choose?
What happens if I die before I retire?
Can I change my mind?

What is a CIS Stakeholder Pension?
It's a type of pension to help people save for their retirement in a tax-efficient way. It meets the minimum standards set by the Government. These are to do with payment levels, costs and terms and conditions.

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How flexible is it?
You can make one-off contributions at any time to top up your plan and/or you can change your regular contributions at any time. The HM Revenue and Customs limits the contributions you can make - see "How much can be paid into my plan each year?" You can stop contributing, or take a contribution 'holiday' at any time. You can take a contribution 'holiday' for a total of two months in any 12-month period. However, you should note that if you stop your contributions, or take a contribution 'holiday', pension benefits will be lower than those you would have received if regular contributions had continued up to your chosen retirement age. In addition, stopping contributions will mean that waiver cover will cease. You can continue contributing to your stakeholder pension regardless of the number of times you change jobs. However, if your new employer operates a company pension scheme, it will normally be in your best interests to join it. You may still be able to contribute to your stakeholder pension as well. You must notify us of any change of employer.

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How much can be paid into my plan each year?
The minimum contribution including tax relief is £20 for both monthly contributions and single contributions. Monthly contributions will be deducted from salary, single contributions by cheque. The HM Revenue and Customs sets a limit on the amount each tax year that can be contributed to a stakeholder pension. Up to £3600 including basic rate tax relief can be contributed each tax year into personal pension and/or stakeholder pension plans regardless of earnings. It may be possible to contribute more depending on your circumstances.

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What about tax?
Your employer will pay its contributions including any tax relief. You will receive tax relief on the other pension contributions into your plan. You will not receive tax relief on any waiver premiums. We claim the tax relief at the basic rate from the HM Revenue and Customs and add it to your plan. If you're a higher rate taxpayer, you can claim the extra relief through your tax return.

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What are the charges?
There is an annual management charge of 1% of the value of the funds you accumulate. If your fund is valued at £500 throughout the year, this means that we deduct £5 that year. If your fund is valued at £7,500 throughout the year, we will deduct £75. When we set each day’s unit price, we allow for the annual management charge. These charges may vary in the future.

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What other benefits can I choose?
You can apply for waiver of contribution cover to provide cover for your pension contributions if the contribution payer is unable to work as a result of sickness or accident.

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What happens if I die before I retire?
We'll pay the plan value.

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Can I change my mind?
If we accept your application we will send you a notice of your right to cancel. On receipt, you will then have 30 days in which you can change your mind and we'll give you and/your employer your money back. This should put you back into the position you were in before you bought our product.

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About the Royal London Group | Legal Information | Modern Slavery Statement

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL. RL Marketing (CIS) Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales number 3390839. Registered office: 55 Gracechurch Street, London, EC3V 0RL. RLUM Limited is authorised and regulated by the Financial Conduct Authority. Registered in

England and Wales number 2369965. Registered office: 55 Gracechurch Street, London, EC3V 0RL.

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