For employers

The complete guide to upgradeMoving your existing workplace pension scheme

to Aegon Retirement Choices (ARC)

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Welcome to Aegon upgrade

This communication is for employers only. It mustn’t be distributed to,

or relied on by, employees or pension scheme members.

This guide provides the details around how Aegon will help move your

workplace pension scheme to our, digital platform – ARC.

ARC provides almost everything your existing pension plan offers and

more, with additional investment options, pension freedoms and at a lower

yearly charge, depending on investment selection as some funds have

higher charges.

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Introduction

As you’re already an Aegon client you’ll know how highly valued workplace

pensions are among your employees. The benefits these offer are often seen as

a key to attracting and retaining staff. The obligations that you as an employer

shoulder, from the government’s auto-enrolment legislation, adds further to the

importance of having the right workplace pension for you and your employees.

Group personal pensions (GPP) (including Stakeholder pensions) have always been a popular choice of employers and advisers. These are standalone pension contracts, typically without the flexibility to add a wide range of investment options and other savings options like Individual Savings Accounts (ISAs) and Investment Accounts. With significant changes to pension’s regulation over the last few years, there is even greater emphasis on securing those options.

While you already have in place a robust pension scheme solution, you may be considering how you can offer your employees the flexibility and solutions that this research highlights. We’re able to offer our platform, ARC, together with our Retiready digital experience to meet these needs.

To make it easy to move to the ARC solution, we offer an ‘upgrade’ programme from your existing pension scheme. This document is designed to take you through the process of moving to ARC, through four key pillars:

We’ll demonstrate the added value ARC

can provide over the existing pension scheme, along with

some of the key features for workplace

savings.

We’ll outline the process of moving and outline how Aegon will undertake the ‘heavy lifting’ elements of

the process, working collaboratively with

you and your adviser.

We’ll assess suitability around moving existing scheme assets,

discussing options with you and your

adviser.

Once a scheme is upgraded, we’ll explain the value we can add to help and support

advisers, you and critically employees to make the most of their

retirement saving.

2

Why move your scheme?

How does upgrade work?

Moving existing assets

Provision of ongoing support

• income certainty;

• flexibility to respond to change;

• access to savings, just in case;

• engagement with their options and help to plan their needs;

• digital access, and

• a legacy for loved ones.

Our research1 shows that employees are looking for:

1Source: Aegon customer panel 31 May 2017

1 3 4

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Good reasons to move your scheme

There are many benefits of moving your existing GPP to our ARC platform.

In this section we’ll outline the differences between GPP and ARC, along with the benefits and functionality that ARC seamlessly offers on platform.

10 good reasons to upgrade

A low service charge with a simple and transparent charging structure.

Award winning ARC platform self-invested personal pension (SIPP)2.

Access to Retiready our digital retirement planning tool.

Seamless implementation and administration.

Access to SIPP, ISA, General Investment Account (GIA) and offshore bonds all in one place.

Wider choice of investments to suit diverse member needs.

Opportunity to relaunch employee benefit package.

Robust investment and scheme governance.

Flexible income options.

One plan for life – no need to move money to take an income.

We’ll only upgrade a workplace scheme if the new scheme is of equivalent or lower cost.

2 Awarded Defaqto 5 star rated Workplace Pension - Aegon Workplace ARC SIPP, 2019.

1

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A straightforward charging structureARC charges are clear, simple and transparent. So members can see exactly what they’re paying for. There are three core charges.

Service charge The service charge covers the cost of administering ARC.

• There are no initial platform charges or set up costs.

• There’s one consistent charge shape across all product wrappers.

• A tiered yearly charge, that’s payable monthly. Once the members’ fund reaches the service cap, they’ll not pay any additional service charges. Their service charge will remain fixed and it won’t increase even if they add more money to their pension.

Investment charges These charges cover the cost of managing investments and checking they’re performing as expected.

They’ll vary depending on the assets chosen. The fund charge is sometimes called the ongoing charges figure (OCF).

Adviser charges Adviser charges are to pay for advice based on the agreement between your employees and their adviser.

For detailed information on charges, please visit: aegon.co.uk/charges-to-workplace

We may vary these charges. If we do we’ll let you and your members know.

Over the next few pages we compare some of the features and benefits that GPP and ARC offer.

Comparing GPP and ARC

A GPP offers a robust solution to pension needs, whereas ARC offers what a GPP does, plus a great deal more flexibility and choice.

Personal Pension Self-invested Personal Pension

Wider savings options

Paper communications and signed forms Digital

Access flexible retirement options

Change plan to access retirement income One plan – save and access income

Improved dependant options

Scheme adviser recorded only Scheme and personal adviser

Additional investment options

GPP offers: ARC offers:

Plus:

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Group Personal Pension (GPP) Aegon Retirement Choices (ARC)

Core product Personal pension. Self-invested personal pension (SIPP).

ISA Not available. Yes. Employers can offer a workplace ISA alongside their workplace pension and pay the contributions through payroll. Members can also choose to open an ISA via self-service.

Other products and investments

Not available. • GIA.

• Offshore bond.

Auto-enrolment (AE) capability

SmartEnrol. SmartEnrol - ARC can accept contributions during opt-out, this will be agreed during scheme set-up.

Contribution management system

SmartPay. Integrated contribution management.

Governance MI Data - a basic solution.

Member Insights - check with your Aegon contact for more details.

Report Zone as standard – providing MI to advisers and employers.

Member Insights - check with your Aegon contact for more details.

Connectivity with third parties

Yes. Available to a limited number of services.

Adviser Only one adviser can be recorded against the plan.

Ability to record a scheme adviser and a personal adviser. Gives the member access to personal advice while being part of their workplace scheme.

Pricing Bundled - can be difficult to view the breakdown of charges.

Unbundled – meaning charges are clearly broken down giving transparency.

Adviser charging Adhoc adviser charging available on selected contracts.

Full adviser charging capability available for personal advice.

Core product featuresThere are a number of key product features that provide a great deal more versatility than that offered through GPP.

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Investment optionsARC gives access to over 4,500 investment options, providing choice and flexibility. It includes investment fund solutions designed to grow your employees savings and options for those near or at retirement who want to take an income.

You’re able to select a default fund to suit your scheme membership or use the Aegon Workplace Default fund, which keeps members’ options open at retirement. We offer streamlined online services and easy to use tools and reporting. And, with our online straight-through processing, your employees can get a quote, apply and invest in funds quickly and easily.

Group Personal Pension (GPP) Aegon Retirement Choices (ARC)

Fund choice 350+ funds (insured funds only). Over 4,500 investment options, including insured funds, collectives, direct equities, investment trusts and exchange-traded funds (EFTs). Control the options that are available to the user with the gating system.

AE default funds 11 11

Model portfolios Not available. Yes.

Discretionary fund managers (DFMs)

Not available. Over 35 available.

Sharesave rollover Not available. Yes.

As at November 2019.

Included in the ARC investment choice are our Workplace Target funds that are designed as scheme defaults. We offer ten funds to choose from, all with built-in automatic switching on approach to retirement. The funds do this to help achieve the outcome you’ve chosen for your membership.

Please always bear in mind that a fund isn’t guaranteed to meet its objectives and the value of investments can fall as well as rise. The final value of a members pension pot maybe less than has been paid in.

Workplace Flexible Target:

• Adventurous Tracker (Flexible Target)

• Growth Tracker (Flexible Target)

• Balanced Tracker (Flexible Target)

• Universal Balanced Collection (Flexible Target) 

• Ethical Managed (Flexible Target)

Workplace Annuity Target:

• Adventurous Tracker (Annuity Target)

• Growth Tracker (Annuity Target)

• Balanced Tracker (Annuity Target)

• Universal Balanced Collection (Annuity Target)

Workplace Cash Target:

• Growth Tracker (Cash Target)

In-house default fund:

• Aegon Workplace Default (ARC)

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User functionalityWe want to make sure you, and your employees get the very best out of the move to ARC. To achieve this we offer a comprehensive range of support right from scheme set-up, through to online access, engagement communications and member tools through Retiready.

Group Personal Pension (GPP) Aegon Retirement Choices (ARC)

Set-up and support Paper based. Online scheme set-up.

Dedicated implementation manager to support you through the transition to ARC.

Multiple payroll site facility

Not available. Yes.

Online access Online valuations and limited planning capability.

Full 24/7 adviser, employer and member capability and control. Retiready – lets members view and manage their workplace retirement savings from one easy to use online account across multiple devices.

Member tools Not available. Retiready offers members access to a number of tools including:

Score – to check if they’re on track for retirement.

Goal Planner – to create goals and set a plan to achieve the retirement they want.

Coach – which guides, prompts and informs members on their retirement journey.

Lifestyle Planner – helping members work out what they’ll need in retirement.

Member engagement Paper communications e.g. joining booklet and annual statements.

A suite of tools to support members and keep them informed about their retirement savings. This includes timely and relevant digital communications to help guide them, such as personalised video summaries and email newsletters.

Member communication Paper based. Email and online document library.

Consolidation process Paper based. Online.

Memo assets (the ability for members to record other holdings)

Not available. Yes, the member can get a fuller picture of their retirement savings.

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Your Retirement PlannerWith the introduction of pension freedoms, members can choose to access their entire pension pot, set-up a flexible regular income, take a cash lump sum, combine multiple options, or simply wait and decide later.

Our YRP tool helps members understand their choices and provides a step-by-step guide to retirement options in four simple steps:

Getting prepared

Understanding their options

Getting help and guidance

Making it happen

Group Personal Pension (GPP) Aegon Retirement Choices (ARC)

Annuity Purchase through a third party. Purchase through a third party.

Flexi-access drawdown Not available – the member needs to change or upgrade their contract.

Provides members with a single plan they can use to save for retirement or take benefits from. Members can access any of the retirement options including drawdown in the same plan.

Pension freedoms – taking a cash lump sum

Yes. Partial withdrawals – once only. For any additional withdrawals, the member would need to change or upgrade their contract.

Yes. Partial withdrawals – unlimited.

Leaver options When the member leaves your employment it’s converted to an Individual Personal Pension (IPP).

When the member leaves your employment they retain their account, full functionality and the scheme price.

Retirement and leaver optionsWith members looking for increased flexibility around how they can take their retirement income, ARC responds to these needs and offers a wider range of options around how retirees can access their money, in comparison to a GPP. With our planning tool, Your Retirement Planner (YRP), members can plan their options simply.

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Check the value of their savings

View and check their transactions

Manage and switch investments

View contributions – split by member, employer and salary sacrifice

View their contractual documents and illustrations

Review investment performance

Check and update their personal details

Access their statements and review transactional details

Consolidate other pension benefits

Input a new retirement date

Open an ISA

Online services Our online service, Retiready, lets members view and manage their workplace retirement savings from an easy to use online account. Similar to online banking they’ll be able to see an overview of recent transactions and any investment growth, on their mobile, tablet or laptop.

Key benefits

• Easily set up your scheme

• Auto-enrolment facilitation

• Seamless payroll payments, including ISA

• Support with governance

• View details online

• Access to helpful tools

• Assign a personal adviser to their account

• Access to online management information

• Support with scheme governance

• Ability to be appointed as a personal adviser

Aegon Retirement Choices (ARC)ARC is the name we’ve given to our transactional tool. ARC is for members who want to actively manage their pension and undertake certain transactions such as changing investments or paying a single contribution. To do this they’ll need to log into ARC. Please see our member guide for further details.

Once they’ve logged in for the first time, they’ll be able to use single sign-on, which means they’ll be able to access ARC directly from their Retiready account, giving access to both systems through one login.

Employer Employee/Member Adviser

As an employer, ARC will enable you to administer your pension scheme efficiently with real time processing and you’ll be able to:

process new joiners to create a new account immdiately;

create and submit your contribution schedule;

process leavers and non-contributors via the contribution schedule;

view and update pension scheme member details;

carry out bulk processes eg. salary and contribution updates, and

review and produce pension scheme reports and information.

For further details please see our employer guide to ARC.

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How does upgrade work?2

If the scheme is suitable, then Aegon will deliver and support the upgrade.

– We’ve split the various actions below to help you understand who does what. Aegon will have carried out as much of the groundwork to reach this point in the process.

– Your dedicated Implementation Manager will be responsible for the successful delivery of the project, keeping you and your adviser up to date at each step of the way with regular project calls.

– All of the member actions and communications are automated, leaving them with very few actions to do.

Aegon Employer/Adviser Employee/Member

1: Planning • Single point of contact

• Project and communication planning

• Scheme design

• Data analysis and cleanse

• Reporting framework

• Tailored support and training

• Scheme default confirmation

• Scheme design

• Agree communication strategy

• Data analysis

• Receive awareness/supporting communications

2: Execution • Scheme set up

• Worksite presentations (if required)

• Auto wrapper creation

• Prepare final data file in prep for wrapper creation

• Online scheme set up

• Auto-enrolment duties

• Issue announcement communications

• No signature required to join

• Receive Retiready activation email

• Activate account online

3: Support • Transfer offer letters issued

• Re-registration of assets

• Review and feedback

• 1st payment on ARC

• Review and feedback

• Receive transfer offer

• No signature required

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What will Aegon deliver?We’ll deliver the move of the scheme, efficiently and with the minimum of disruption. The key point to highlight is that we’ll do all of the ‘heavy lifting’ - the bulk of the actions required to support an upgrade. We make it a truly collaborative process.

Here’s what needs to happen to make sure everything goes as smoothly as possible.

We’ll supply you with scheme announcements

We’ll provide you with the items to issue to your employees so they have enough information to make decisions about their new scheme, including; key features, example illustrations, customer journeys and details of the member website.

Your Implementation Manager will help you create the announcement and support communications to suit your scheme.

Aegon Adviser Employer Member

Data cleanse

Scheme design

Communication design

Announcement communication

Scheme set-up

SmartEnrol transition to ARC

Wrapper creation

Retiready activation

Transfer offer

1st assessment and payment

Re-registration of assets

Review and feedback

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We’ll supply you with communication support

We’ll provide posters and desk drop leaflets, plus digital banners for hosting on your intranet site, to help you announce the changes.

We’ll encourage members to activate their Retiready account

Once the scheme is set up and the members are added and their records created, we’ll work to encourage your employees to activate their Retiready account.

To benefit from all the tools and guides that Retiready is able to provide it’s really important that members activate their accounts.

We offer ‘how to’ guides and videos to help get your employees using Retiready.

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Moving existing assets3

We’ll conduct a policy level assessment. There are three different outcomes for members of an Aegon GPP moving to ARC – we’ll contact scheme members with one of three outcomes.

For members we’re able to make an offer to:

1. Offer to transfer – no signature required

They’ll receive an offer letter to transfer without any requirement for a signature.

Default Investors

We’ll transfer their existing assets on a re-registration basis without any out of market exposure. Their funds will land in the ARC default fund.

Active Investors

For those members who’ve made an active investment choice, we’ll be able to re-register their assets where:

• their funds are available on ARC, and

• their fund choice is no more expensive than the GPP.

2. Offer to transfer, complete transfer form – signature required

They’ll receive a letter which explains we’re able to make an offer, but it’ll be their choice depending on their own situation to proceed.

For example they may incur a slightly higher charge or have ‘waiver of contribution insurance cover’ on their GPP. These factors could be outweighed by the new digital experience and their ability to manage their investments in one place.

Under these circumstances they’ll need to complete and sign a ‘transfer authority’ form if they wish to take up the offer and move their existing GPP fund value to ARC.

1. Offer to transfer –no signature required

3. No offer to transfer

Policy level assessment

2. Offer to transfer, complete transferform – signature required

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3. For members we’re not able to make an offer to:There are some circumstances where we’ll not be able to make an offer to transfer existing assets.

These could be:

Significantly higher charges

Passed policy retirement date

Within 12 months of policy retirement date

Investment fund not available on ARC

Non-UK address excluding the Republic of Ireland

Legal order on policy

While we may not be able to make an offer, it doesn’t mean assets can’t be moved over. Your Implementation Manager will be able to discuss the options available.

Regardless of the three outcomes above, we’ll set up the regular payments in the new ARC scheme for all members.

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A typical upgrade process - from start to finish

Ongoing

support ARC

Platform

Centre

Implementation and

planning meeting Communications

planning and sign off

Announce scheme

First payment

to new scheme

Scheme

commencement

Upgrade completion

and review

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

Planning Execution Support

Fact find

Roles and

responsibilities

Project Plan

Data cleanse

Communication

strategy

Scheme design/

set-up

Final member

data

Announce

scheme

Presentations

Member welcome

journey

Transfer offer

Go live

Transfer of

assets

First payment BAU

established

Review and

feedback

Key milestones

1. Implementation and planning meeting

2. Project plan and roles and responsibilities agreed

3. Data analysis and data cleanse

4. Communication strategy agreed

5. Scheme design and set up

6. Scheme announcement

7. Worksite presentations

8. Wrapper creation and Retiready activation

9. Transfer offer

10. First payment

11. Transfer of assets

12. Business as usual (BAU) established

13. Review and feedback

Aegon is a brand name of Scottish Equitable plc (No. SC144517) and Aegon Investment Solutions Ltd (No. SC394519) registered in Scotland, registered

office: Edinburgh Park, Edinburgh, EH12 9SE. Both are Aegon companies. Scottish Equitable plc is authorised by the Prudential Regulation Authority and

regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Aegon Investment Solutions Ltd is authorised and regulated by

the Financial Conduct Authority. Their Financial Services Register numbers are 165548 and 543123 respectively. © 2020 Aegon UK plc

WP377476 01/20

aegon.co.uk @aegonuk Aegon UK Aegon UK

If you have any further questions about what you’ve read in this guide, then please get in touch with

your usual Aegon contact who’ll be able to assist you.

ARC is a multi-award winner

These awards recognise the technology and innovation that we can offer.

Schroder UK Platform Awards

2016 - Best use of Platform

Technology award

P E N S I O N S I N S I G H T

AWA R D S 2 0 1 6

WINNER

Pensions Insight DC Awards

2016 – Best Independent

Governance Committee

Defaqto Gold Service rating

2017 - Platform Service

Defaqto 5 star rated

Workplace Pension

2019 - Aegon Workplace

ARC SIPP

2018 - Aegon Workplace

ARC SIPP

Financial Technology Research Centre (F&TRC)

2018 - Workplace Pensions and Auto-Enrolment ratings.

• Aegon Workplace ARC – Gold overall for Workplace Pensions

• Aegon Workplace ARC – Gold overall for Auto-Enrolment