TargetPlan contract-based workplace pensions

TargetPlan gives your members control over their retirement with a personalised online experience. 

What is a contract-based pension?

A contract-based pension is set up as an individual contract between the employee and the pension provider, with no fiduciary duty imposed on you as the employer. Contract-based schemes don’t have a trustee board to look after member interests, although some employers set up governance boards to monitor their schemes. 

Our TargetPlan contract-based pension is a defined-contribution (DC) pension. This is where the pension pot achieved depends on the level of contributions made by the employee and employer, tax relief from the government, and any investment growth. 

Our contract-based pensions

Defined-contribution pensions offered on TargetPlan include a group personal pension and a group stakeholder pension. 

Each of our defined-contribution (DC) schemes can be provided on a full administration and investment basis, or an investment-only service. 

Group personal pension

Our TargetPlan Group Personal Pension (GPP) scheme is a contract-based workplace pension and a type of defined-contribution pension that’s run by us, the pension provider. Employees contributions are passed on to us which we invest on behalf of your members, with the aim of growing their pensions over time. 

Even though the pension is administered by us, you’ll still have access to rich member insights and behavioural data to help inform your workplace pension communications. 

GPP members build up a pension pot and at the age of 55 (rising to 57 in 2028), they have the choice of accessing their pension through a variety of options, including flexi-access drawdown.  

Group stakeholder pension

Stakeholder pensions for the workplace allow employers to comply with stakeholder pensions legislation. Just like a group personal pension, when they retire, employees can access their pension pot in a number of different ways.

Independent governance looking out for your workplace pension

There’s an FCA requirement for all plan providers to put an Independent Governance Committee (IGC) in place.

At Aegon, our IGC acts as a customer advocate by reviewing whether our workplace pension provides value for money. They challenge us to clearly define our value for money principles and address anything which may not meet these principles. 

For the workplace, independent governance helps to raise your employees’ confidence in their pension savings, which is good for financial wellbeing.

Trust-based schemes

  • Run by an employer through an appointed board of trustees
  • The trustees have a fiduciary duty to act in the members’ best interests
  • Assets are legally ring-fenced away from sponsoring employer’s assets
  • Regulated by The Pensions Regulator and the Financial Conduct Authority

Contract-based schemes

  • Run by a third-party plan provider who will manage all aspects of the scheme
  • Operated on a contract basis between the members and the plan provider
  • Each member has their own ring-fenced policy
  • Regulated by The Pensions Regulator and the Financial Conduct Authority

While this covers the main differences, we suggest getting advice from an experienced adviser before deciding on your company pension scheme.

Wider workplace savings

By choosing Aegon as your workplace pension provider, you’ll also be able to offer your employees more ways to save, including our stocks and shares ISA. 

Our flexible savings options can be used by your employees to save towards what matters to them, from everyday essentials to life’s little luxuries. Having more savings methods on offer, in addition to a workplace pension, can help your employees plan their finances today and for the future.