FREQUENTLY ASKED QUESTIONS

Why are you making the changes?

We constantly review and evolve our workplace pensions offering to meet our customers' changing needs, as well as market demands. Through these changes, we're enhancing the features of your workplace pension scheme at no extra cost.

For example, your employees will benefit from greater flexibility within their existing plan at retirement, through the introduction of integrated flexible access drawdown (referred to as flexible income). They'll also be able to remain invested in their plan up to age 99 before taking their benefits. In addition, we're making our charges even more transparent.

What date will the changes happen?

These changes will happen automatically. Using the unique reference number provided in your pension suspension period letter, the table on the main landing page will provide details of when the changes will happen for your scheme.

Once the changes are made, we'll write to your employees to confirm and let them know that their updated T&Cs apply.

How can my employees find out more about the proposed changes?

We've written to your employees to tell them about the changes.

This includes any new employees that join your pension scheme before the changes are made. 

We would also ask you to make them aware of the upcoming changes and refer them to our employee page for more information. 

What happens if an employee leaves before the changes are made?

Employees who leave your pension scheme before the changes are applied, won't benefit from any of the changes we're making to your scheme. You should notify us of leavers in the usual way, there is no additional action for you to take.

When writing to your employees to let them know about these changes, we'll also make them aware, that if they leave your scheme before the changes are made, the changes won't apply to them.

Why are there different dates for the changes?

We're making changes across a large number of customers, and to carry this out safely, we need to complete it over several phases.

Where can I find a copy of the updated Terms & Conditions (T&Cs)?

• View the GPP T&Cs (PDF, 469KB)
• View the GSHP T&Cs (PDF, 513KB).

Employees should read through the updated T&Cs and keep a copy with their other plan documents. If employees need these in another format such as large print or braille they can contact us.

What is the difference between Policy Provision and Terms & Conditions (T&Cs)?

Policy Provisions was the name we previously used for Terms & Conditions (T&Cs). Going forward these will always be referred to as T&Cs.

What is ADB?

Where ADB applies, should an employee die as a result of an accident, during the ADB period, we would pay out the higher of either the fund value at the date of death or the ADB amount.

Information on ADB cover and how it's calculated is provided with a plan endorsement and within the T&Cs.

How long does the ADB cover last?

Employees whose plans were set up on or before 28th January 2022, have had ADB cover added or extended on their plan for 5 years. All employees were provided with a formal endorsement.

Will every new employee get ADB if they join an existing scheme?

 All new employees who've joined after 29th January 2022 will qualify for ADB for the first 5 years of their plan.

What is flexible access drawdown?

Flexible access drawdown could allow your employees to use some or all of their pension savings to provide a flexible income at retirement, from their existing plan.  They’ll no longer need to set up a new plan to do this.

Employees can normally take a tax-free cash lump sum of up to 25% of the value of their pension savings. The rest remains invested and can be used to provide them with a taxable income as and when they need it. There are no additional charges for employees when they access drawdown.

How will employees be able to access integrated flexible access drawdown?

From normal minimum pension age (currently 55, increasing to 57 from April 2028), your employees can access integrated flexible access drawdown by contacting our Retirement Team on 0345 835 6644. Lines are open, 9am to 5pm Monday to Friday.

What is the minimum pot size to access integrated flexible access drawdown?

The minimum initial amount an employee can move into drawdown is £10,000. This includes any tax-free cash amount the employee chooses to take.

The minimum amount they can subsequently move to drawdown is £2,000 (including any tax-free cash amount the employee chooses to take) or the full balance of their retirement savings if less.

Can employees access drawdown now?

If your scheme has already benefited from the enhancements and changes, your employees can access integrated drawdown through their existing workplace pension plan.

If your scheme hasn’t benefited from the enhancements and changes, and an employee wants to access drawdown with Scottish Widows, they can do so by moving to our Retirement Account plan. They can contact our Retirement Team on 0345 835 6644. Lines are open 9am to 5pm, Monday to Friday. Once the enhancements and changes have gone through, any employees who want to access drawdown for the first time, will be able to do so through their existing workplace pension plan.

Why are you no longer offering UWP funds?

We periodically review the range of funds we offer to new and existing customers. We haven't offered UWP fund to new Group Personal Pension joiners since 2012, and have never offered the fund to Group Stakeholder Pension customers. We've now decided to stop offering the UWP fund to all our workplace customers.
 

How does the removal of UWP impact employees?

We've written to all employees with UWP investments and their employers to let them know we have removed UWP as an investment option and explained what we've done on their behalf.

You're introducing new flexibility to investment governance. What does this mean?

We may make changes in certain circumstances without the employees' consent, such as:

• We may move an ex-employee to our default investment strategy, if the customer is invested in a bespoke lifestyle.
• We may move employees to our default investment strategy if we become aware an adviser is no longer supporting a bespoke strategy.

We'll inform employees of any changes we make.

Why are you adjusting employees' investment fund holdings?

The changes we’re making to how we deduct charges mean we need to introduce new fund series for our funds. There's no changes to the funds themselves.

Our phased approach to the changes means the new fund series will be priced differently from the existing unit series. Employees will notice a difference to their unit prices and the number of units allocated to their plans, but their overall plan values won't be affected by this change. We’ll do this by allocating units of an equivalent value to employees’ plans.

For example, say units in an existing series were priced at £1 on the day we introduce the changes, and units in the equivalent new series were priced at £0.50 on that day; if an employee’s plan held 1,000 units (1,000 x £1 = £1,000) in the existing series, we would convert their plan’s holding to 2,000 units in the new series (2,000 x £0.50 = £1,000).

Following the unit adjustment, employees will be advised of their new unit holdings and prices in their confirmation letter.

Information on unit holdings and prices will also be provided in their annual benefit statement each year.

Where can I find out more information about the new fund series?

• Find out more information about the GPP fund series 
• Find out more information about the GSHP fund series

This is different to the fund series that you and your employees have accessed before. The unique identifiers for each fund (SEDOL/ISIN/MEX ID) have changed. It’s important that if you’re searching for details of a specific fund, you use the links above. 

What changes are being made to the fund range?

Access to your existing self-select fund range will continue and if you have a Group Personal Pension, your employees will also have access to some new fund options.

This extended self-select fund range provides employees with access to more choice across asset classes and sectors, including environmental, social and governance (ESG) options.

Employees may also notice changes to some fund names, which have resulted from historic fund manager mergers, acquisitions or re-branding. These changes are detailed in the table below:

When will access be available to the extended fund range?

If your scheme is a Group Personal Pension, access to the extended fund range will automatically be made available at the same time as all the other enhancements and changes are made.

Using the unique reference number provided in your Pension suspension period letter, the table on the main landing page will provide details of when the changes will happen for your scheme.

Where can I find out more information about the new fund series?

• Find out more information about the GPP fund series 
• Find out more information about the GSHP fund series

This is different to the fund series that you and your employees have accessed before. The unique identifiers for each fund (SEDOL/ISIN/MEX ID) have changed. It’s important that if you’re searching for details of a specific fund, you use the links above. 

Why will BACs or cheques take longer than before?

Payments received by Direct Debit are available in our bank accounts on the same day. This allows us to initiate the investment instruction on that day.

Payments sent by BACs or Faster Payment are not available on our bank accounts until the next working day. Only once these are available can we initiate the investment instruction. This means payments submitted by BACs or Faster Payment can take up to an additional three business days to invest.

How can I set up a Direct Debit for my scheme?

If you wish to set up a Direct Debit for your scheme, please complete and return a Direct Debit Instruction form (PDF, 181KB).

If you have one payment arrangement containing only one section, please complete one instruction.

If you have multiple arrangements and / or multiple sections, please:

• Complete one instruction if you use the same bank account for all arrangements and sections.
  
• Complete multiple instructions if you use different bank accounts for each arrangement.
• Complete multiple instructions if you use different bank accounts for each section within an arrangement.

Alternatively, please contact us by email at workplacepensionssupport@scottishwidows.co.uk and we'll discuss this with you.

Are there any changes to how my employees plan charges are deducted?

The method we use to take charges from your employees' plans will change. Moving forward, they'll be able to more clearly see the different charges that make up their Total Annual Fund Charge (TAFC).

• Annual Management Charge (AMC) - the cost of managing each investment fund, deducted daily through the calculation of unit prices.
• Fund Expenses (FE) - any additional costs linked to operating each investment fund, for example, legal, auditor and custodian costs, deducted daily through the calculation of unit prices.
• Fund Based Charge (FBC) - the cost of operating their plan, calculated daily and deducted each month by selling units from their plan. FBCs will be deducted from the least volatile fund the employee's plan invests in (i.e. the fund which is expected to experience the least fluctuations in its unit price over time). 

The sum of these charges will equal the TAFC.

Once the changes have been made, we'll let your employees know their administration charge (Fund Based Charge). For GPP employees, they can access to our Charges Sheet Tool. The tool allows them to view their overall charge (Total Annual Fund Charge) based on their specific investment fund(s).

Does the new charging structure mean employees are worse or better off?

At the moment, employees can pay different levels of charging on different payment types - regular, single and transfer payments. Moving forward, we're going to simplify this approach, meaning the same charge rates will apply to all payment types.

• For employees who currently pay a higher rate of charges on single (SP) and/or transfer (TV) payments compared to the charges for their regular payments (RP), moving forward the RP charge rate will apply across all 3 payment types. This means these employees will see a reduction in their overall plan charges, if they have made and/or make any future TVs or SPs.
• For employees who currently pay a lower rate of charges on TV/SPs compared to the charges their RPs, a new blended charge rate will apply across all 3 payment types. These employees won't see any immediate increase in their overall plan charges, and moving forward their RP charge will reduce. However, they could see an increase in their overall plan charges in future, depending on if they have made and/or make any future TVs or SPs, and how the different payment types grow.
• Any new joiners will use a single scheme charge for any type of payment they make into their pension.
   

Within my scheme, can employees have different charges?

Yes. Employees could have different charges based on historical scheme charges, the types of payments they have made and the funds they have invested in.

How do I find out my updated scheme number and when should I start using it?

When you log into your digital services after the changes have been made, the updated scheme number will be visible next to your existing number. You should start using the updated number straight away.
 

How are you letting employees know their updated plan number and when they can start using it?

We'll write to your employees to let them know their updated plan number once the changes have been made. Whilst we'll be able to identify an employee with both their existing and updated numbers, we prefer that they start using their updated number straight away.

How will I know when the online services will and won't be available?

Indicative dates are shown on our Employer page. Please refer back to this page for updates. Reminders will be posted on our digital services in advance to let you know when they will be unavailable. You can also contact us.
 

What will be restricted during the upgrade period?

During the upgrade period access to Employer Digital Services and AssistMe will be restricted. You'll be unable to log in, upload payroll files or make any payments.
 

Why is there an impact to service availability?

Access to digital services is restricted to enable us to make updates to the services and the systems customers use.

What impact will there be for me and my employees when your digital services are unavailable?

You and your employees won't be able to log in or view any details during this time. You also won't be able to carry out any payroll activity and your employees won't be able to carry out any transactions on their pension plan.

What if I want to do something while the online services aren't working?

Please contact us.

Will my log in details change?

There will be no change to your log in details.

Will there be any changes to the payroll templates?

The Contributions File template for Employer Digital Services remains unchanged. You’ll be able to add both regular and single payments to this template and upload files in the normal way you do today.

There's a small change to the New Joiner template and the updated version will be available for you following your upgrade weekend. We're adding a new column to capture 'employment start date', while the completion of the 'nationality' column will be mandatory. When you log on for the first time after the upgrade, a banner will appear to advise you of the updated template and download to use - as there's slight changes in the format, it's important that you use this version and not try to replicate/map across the details to your existing template.

We've also created a new Single Payments template. This can be used as a one-off request, out with the normal payroll cycle.

There are no changes to any templates within AssistMe.

Can more than one payment go into an individual employees' plan?

No, moving forward we'll be unable to accept two different payments being made to one employee's pension plan, in the same pay period. If you make separate payments to one plan, it'll result in your payroll process failing and payments won’t be collected.

I have multiple sections, if an employee moves roles from one to another, can both sections pay into their pension plan in the same pay period?

No, we won’t be able to accept payments in this scenario. It's important that the employees' previous section completes all outstanding payments, before their new section sets up future payments. If more than one payment is made from different sections, in the same pay period, the payroll process will fail and we won't be able to collect any payments.

I currently have an employee who has a role in more than one section, with each section making payments into their pension plan. Can I continue to do this after the changes have been made?

No, we'll no longer be able to accept both sections paying into the employees' pension plan. Moving forward, we'd need only one section to arrange for a combined payment each pay period, to cover both sections' pension payments. Failure to do this will result in your payroll process failing and we won't be able to collect any payments.

Will my section details change? 

Yes, the scheme number, payment arrangement number and section details you currently use for all your payroll activities are changing. Also, sections will now be referred to as paycentres. Your new details will be confirmed in your 'Pension payment suspension period' letter. 

Can I continue to submit single payment files? 

We can accept ad-hoc files, but they can only be submitted using the same payment method as your regular contributions: 

• for Direct Debit paycentres, you must submit ad-hoc payments by Direct Debit 
• for all other paycentres, you must submit ad-hoc payments by BACs and pay to the correct bank account: 
  • Account Name:  SWL GPP GSP Collns (a Scottish Widows Limited bank account)  
  • Account Number:  10908908  
  • Sort Code: 16-04-00  
  • Reference: your updated scheme number (this must be quoted).  

It’s recommended that you combine any one-off single payments with your regular payroll files.  

Find out more details about how to best manage your payroll activity:

• Employer Digital Services schemes
• AssistMe

When will you let me know about the temporary payment suspension and what I need to do?

Indicative dates are shown on the landing page. We'll write out to let you know the suspension period dates and any actions you may need to take ahead of the suspension period. There will also be reminder messages on Employer Digital Services as the suspension period dates get closer.
 

If the payment suspension dates you provide aren’t suitable, what can I do?

The payment suspension dates, once confirmed, will be fixed. You'll be asked to upload your payroll file and request a collection or payment before or after the suspension period.

When will the payment restriction apply and for how long?

The payment suspension period will apply before and after the changes have been made:

• the last payroll upload can be done up to 11 working days before
  
• the last payment (both DD and non DD) can be made 2 days before
• the first payroll uploads can be made 2 working days after
• the first non DD payment can be made 2 working days after
• the first DD collection date will be 12 working days after.

The letter you receive will provide you with the exact dates and key next steps.

Will the dates I can select for the Direct Debit collection be restricted due to the system upgrade?

Yes, there will be certain dates that you cannot select for Direct Debit collections. The last Direct Debit collection date you can select is 2 days prior to your upgrade. You’ll not be able to select a collection date until 12 working days after your upgrade.

You said you’re changing the bank accounts we use to collect pension payments, what are the new account details?

Account Name: SWL GPP GSP Collns (a Scottish Widows Limited bank account)
Account Number: 10908908
Sort Code: 16-04-00.

Overseas clients should use: 
Account Full Name:  Scottish Widows Limited Workplace Savings GPP & GSP Pension Collections 
Account Number:  10908908 
Sort Code: 16-04-00 
BIC Number: RBOSGB2L  
IBAN: GB38RBOS16040010908908 

It's important that if you're submitting a payment to the bank account, you must use your new scheme number as the payment reference. 

Will Single Premium Direct Debits for one-off payments still be switched off due to inactivity after a year?

Moving forward, only one file will be uploaded each month and this will include both regular and single payments, but it will be collected under one Direct Debit.

This will remove the issue of anything being switched off due to inactivity.

However, please note that payment instructions from non UK bank accounts cannot be accepted.

What are Former Protected Rights and why are you making changes?

Prior to April 2012, employees could choose to contract-out of the additional state pension scheme. In return, the Government made payments each year to their pension plan.

Plan benefits built up from these payments were referred to as ‘protected rights’, and had to satisfy certain Government rules when paid out. The Government abolished protected rights in 2012, meaning these benefits are now treated in the same way as all other plan benefits. We often refer to these benefits as 'former protected rights'. We’re simplifying the plan documents by removing references to former protected rights. This won’t affect how the plan operates. 

What are arrangements and why are you making changes?

To provide your employees with flexibility when their plan was set up, it was divided into up to 1,000 smaller parts known as 'arrangements'. We can now provide this same flexibility without the need to reference multiple arrangements. We’re therefore simplifying the plan documents by removing references to multiple arrangement(s). This won’t affect how the plan operates.

What should I do if I have any questions or need more information about these changes?

Please contact us.