MDC Defined Contribution Scheme

MDC Defined Contribution Scheme

Year End 30 November 2018

Charges and transaction costs

The charges imposed by ReAssure over the year to 30 November 2018 were 0.7% p.a. Since 1 December 2018, the fund’s annual charge has remained at 0.7% p.a. The Trustees have requested further information from ReAssure regarding all charges and transaction costs over the year, however, ReAssure were unable to provide any breakdown and simply stated that there are none.

This charge continues to remain below a benchmark charge cap of 0.75%, set by the law for default funds in pension schemes used to comply with automatic enrolment regulations. For this reason, the Trustees are not immediately concerned with the current charges and can also confirm that they have taken account of statutory guidance when considering their assessment of costs and charges.

Illustration of costs and charges
Deferred member

The figures in the table below show the effect of the fund manager’s charges on a deferred member’s policy value over incremental periods for the next 40 years. The table shows the effect based on the assumptions set out in the notes alongside the table.

ReAssure with-profits fund (Pen Saver Interest Pension Accumulator Series 01)

Years to retirement

Before charges

After all charges deducted































  1. Projected policy values are shown in today’s terms and do not need to be reduced further for the effect of future inflation.
  2. The starting policy value is assumed to be £8,750.
  3. Inflation is assumed to be 2.00% each year.
  4. No further contributions are assumed.
  5. Values shown are estimates and are not guaranteed.
  6. The projected growth rate for the fund is 6.60% pa before charges.
  7. Inflation, charges and projected growth rate obtained using information provided by ReAssure.
Value for members

As part of a Scheme wide review, the Trustees looked at the services members pay for over the four core areas detailed in the Pensions Regulator’s guidance: administration, investment governance, communications, scheme management and governance. The Trustees recognise that the only services that members routinely pay for are in relation to the investment of members’ accounts. In other words, the only costs borne by members are the charges that apply to the investment of their accounts.

Although a formal benchmarking exercise has not been undertaken, based on previous advice, the Trustees consider the investment product offered by ReAssure to be a suitable and cost effective option for members.