Pensions

Flexible Retirement Plan (FRP)

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Remuneration

The Flexible Retirement Plan (FRP) offers a range of fully flexible adviser charging options, which can be tailored to a client's requirements and your business model.

Options

You and your clients benefit from having a number of different payment options depending on the nature of advice you're giving.
Depending on the type of contribution, clients can opt for adviser charges as a fixed monetary amount, or as a percentage of the contributions or fund value.
You can take ad hoc adviser charges as agreed with your client.
Ongoing adviser charges provide a revenue stream for your business model, reflecting the ongoing advice clients will require.

Different adviser charging options can be selected each time a Personal Pension or Income Drawdown plan is set up or transferred across to, under our FRP wrapper. There are options for regular contributions, single contributions and transfers. Ad hoc adviser charges can be paid directly from a Self-Invested Personal Pension (SIPP), with your client's agreement.

Remuneration options and limits
Set-up charges
	Single contributions and transfer values For transfers and Income Drawdown plans, if you agree a set-up adviser charge with your client, it can be taken from the plan by us and paid to you. It is deducted from the plan immediately after the transfer or contribution is invested. It is taken from the transfer value after the deduction of any tax-free cash.	Regular contributions If you agree a set-up adviser charge with your client, this can be taken from the plan by us and paid to you. It can either be deducted from the plan immediately after the contribution is invested (from the gross contribution, after basic rate tax relief has been applied). Or, there is an agreement to pay over an initial period of up to 60 months.
Personal Pension	- Agreed between you and your client at outset of plan. - Maximum 10% of contribution (after deduction of any tax-free cash).	Initial period (up to 12 months) - Agreed between you and your client at outset of plan. - Maximum 50% of contribution for initial period then maximum of 10% of contribution for remaining term. Initial period (more than 12 months - up to 60) - Agreed between you and your client. - Maximum 10% of contribution for initial period and for remaining term. If no initial period is selected, then maximum is 10% throughout plan term.
Income Drawdown	As above	N/A

Ongoing charges
	Single contributions, regular contributions and transfer values You and your client can agree the amount they will pay you for any ongoing advice in the form of 'Ongoing Adviser Charges'. These are taken from the plan by us and paid to you. They can be specified as a percentage of the fund value (excluding any investment in Self-Invested Funds) or a specified monetary amount each year. The ongoing adviser charges can be paid monthly or yearly in arrears. Charges deducted will be shown on your client's illustrations. They can request that ongoing adviser charges stop, start, increase or reduce at any time by writing to us: Freepost, Prudential, Lancing, BN15 8GB.
Personal Pension and Income Drawdown	The combined value of ongoing adviser charges and ad hoc adviser charges over a policy year for any single plan are capped at 2% of fund value (excluding Self-Invested Funds) each year.

Ad-hoc charges
	Single contributions, regular contributions and transfer values These charges are agreed between you and your client for any ad-hoc advice received. They are taken from the plan by us and paid to you, following a written request from your client. Ad-hoc charges can be specified as a percentage of the fund value (excluding any investment in Self-Invested Funds) or a monetary amount.
Personal Pension and Income Drawdown	The combined value of ongoing adviser charges and ad hoc adviser charges over a policy year for any single plan are capped at 2% of fund value (excluding Self-Invested Funds) each year.

Additional remuneration
PruFund Protected Funds	Adviser charges will be taken proportionally across all funds. For ongoing adviser charges and ad hoc charges where a PruFund Protected Fund is selected with at least one other fund, your client can choose not to have these adviser charges deducted from the PruFund Protected Fund. This protects the Guaranteed Minimum Fund. See more on guarantees.
SIPP	SIPP remuneration Where a Self-Invested Personal Pension (SIPP) is selected, only ad-hoc adviser charges can be paid from the bank account under the Self-Invested Fund (provided a suitable client agreement is in place).
	It is possible to pay adviser fees from the Self-Invested Fund with approval from the client.