Advantages of joining the TUC Scheme

• The TUC Stakeholder Pension Scheme – which is open to union and non-union members and their families – is designed to be one of the best stakeholder pension schemes available offering scheme members  an attractive package of benefits
• Monitoring The scheme provides the opportunity to save for retirement in an affordable way.  Trustees monitor the Scheme to ensure that members’ interests are put first.
• Tax Efficient Tax relief is available on contributions up to the level of a person’s remuneration subject to Her Majesty’s Revenue & Customs (HMRC) overall limits. This means that every £100 invested costs you only £80. This is based on a basic tax rate of 20%. If you pay tax at the higher rate (40%) you can claim back the difference from HMRC at the end of the year through the self-assessment mechanism. What’s more, whatever fund you choose, your money will grow in a largely tax free environment.
• Availability  You don’t have to be a union member to take out a TUC Stakeholder Pension.   It is available to you if you are:
• Self-employed
• An employee and cannot join a stakeholder pension scheme where you work
• An employee and already benefit from an occupational pension but would like to top up your pension savings through a stakeholder pension scheme
• Not working and would like to save for retirement.   Even if you do not have any earnings you can still pay in up to £2,880 in a tax year, which with basic tax relief added by HMRC becomes £3,600.
• Tax-Free Lump Sum You can convert your entire fund into a pension at retirement if you wish. Alternatively, current HMRC rules permit 25% of accumulated pension savings to be taken as a tax-free lump sum and the balance used to buy a smaller taxable pension.
• Adaptability  The minimum contribution into a stakeholder pension is £20.  However, the TUC Stakeholder pension permits a minimum contribution of £10 regardless of whether this is a regular or a one-off payment and you can change or stop your contributions at any time with no hidden penalties.  If your employer is deducting contributions from your earnings, your ability to change regular payments may be restricted to once every six months.  This flexibility means that the scheme can change with the way you work and live
• Flexibility  You can take your pension from job to job without any penalty.
• Contracting Out If you’re employed you can normally use your TUC stakeholder pension plan to contract out of the State Second Pension.  This is an important decision and you need to consider all the implications.  If you are in any doubt as to whether contracting out is right for you, or you need help reaching this decision, you should seek financial advice
• Low Charges  The annual charge (AMC) on the value of the funds you accumulate is currently 0.85%.   This is below the 1.5% maximum annual management charge currently permitted by law.
• Options  The Scheme offers a wide variety of investment options covering all attitudes to risk. There is also a default fund option where your payments can be automatically invested if you want to play a less active role and do not choose an investment fund.
• Exciting Benefits.  The TUC stakeholder Pension Scheme also offers scheme members an exciting package of additional benefits

Click here to read important information about your commitment as an investor in the TUC Stakeholder Pension Scheme

To find out more, simply contact us by one of the following methods:

Click here to join the TUC Stakeholder Pension Scheme OR

E-mail us at tucstakeholder@prudential-pensions.co.uk OR..

Call our dedicated team on 0845 070 6666 for an information pack and application form.  Lines are open from 9am to 7pm Monday to Friday and 9am to 1pm Saturday. Calls may be monitored or recorded for quality and security purposes.

* The tax relief rate quoted applies to the tax year 2009/20010

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*Please note that the effect of legislation, particularly concerning taxation, will depend on the financial circumstances of the individual and is open to different interpretations and future changes. Remember that the pension you get, after taking the tax-free lump sum, is taxed as earned income.

This web page has been approved by the Prudential Assurance Company Ltd. which is authorised and regulated by the Financial Services Authority.