The price of the units goes up and down in line with investment performance. The aim is that the value of your pension pot will increase in the long term.
Investment options are regularly reviewed by the Trustee to check they’re performing in the way they’re expected to. You may sometimes see changes to the options that are available to you.
Your pension pot is automatically invested in one of the Scheme’s default Pathways. The Pathway you’re in depends on the value of your pension pot and how close you are to your Target Retirement Age (TRA). You can find out which fund you’re invested in by logging into L&G’s Manage Your Account Portal, select ‘Manage My Pension’, then ‘Your Investments’
The two default Pathways have been carefully designed by the Trustee to consider the needs of most Scheme members.
There’s also a range of Self-Select fund options you can choose from if you wish to make your own fund selections.
The two default Pathways are designed to grow your pension pot over the long term, while carefully managing investment risk.
The JLP Cash Pathway is designed for members who intend to withdraw their pension savings as a single one-off cash lump sum payment or purchase a guaranteed income (known as an annuity).
The JLP Flexible Income Pathway is for members who want the flexibility to take an income gradually throughout retirement, or take occasional lump sums from their pension pot, rather than withdrawing all of their pension savings at once (this is known as drawdown).
The default Pathways have different phases:
While you’re further away from your Target Retirement Age (TRA) your pot is invested in funds with higher investment risk, which is expected to lead to higher returns over the long term.
Increasing the value of your pension pot is important to ensure you have the retirement savings you need when you reach your TRA.
When you’re 10 years from retirement we start to de risk your funds to help prepare for your retirement.
Both Pathways have identical underlying investments until 5 years from your TRA.
At this stage, your investments will be in funds that are suitable for the way you plan to use your pension savings.
The underlying investment will differ between the two Pathways as you approach your TRA.
If you’d like to choose your own investments, you can select from a range of other funds the Trustee has made available.
It’s important to know that if you self-select your investment funds, you’re responsible for choosing your funds and changing them – it’s especially important to be aware of when you should be in the growth phase of your pension savings versus taking less risk as you approach retirement.
You’re likely to be a member of the DB Section of the Scheme if you worked at the Partnership before 1 April 2015. XPS is the administrator of the DB Section.
The DB Section closed on 1 April 2020 and therefore members who joined the Partnership after 1 April 2015 will only have a Defined Contribution pension pot.
This is where you can find information about your current pension if you’re a Partner now, or were a Partner after 1 April 2015. The Defined Contribution pages are probably the most important for you.
Members who joined the Partnership before 1 April 2015 may also hold DC pension pots with Prudential or Legal and General, as well as a Defined Benefit Pension in the Scheme. We previously referred to this as Hybrid or Dual Benefit. This is because you may have joined the DC Section of the Scheme when you started working at the Partnership and then, after a defined waiting period (which depends on the date you joined the Partnership), you would have become eligible to join the DB Section.
The DB Section closed on 1 April 2020 and therefore members who joined after 1 April 2015 will only have a DC Section pension pot.
