The default is where members are invested if they haven’t made a selection of their own.

Chevron UK Pension Plan Costs and Charges

The Plan has two ‘default arrangements’:

  • Fidelity Chevron Equity/Bond Split 50/50 Lifestyle Strategy
    (Default Arrangement 1)
  • Fidelity BlackRock World (ex-UK) Equity Index Fund
    (Default Arrangement 2)

Default Arrangement 1 is the arrangement that contributions in respect of our New Section members of the Plan are paid into if a member doesn’t make an alternative selection.

Default Arrangement 2 is the arrangement certain members’ funds are invested in, either because they have selected this arrangement or they previously chose to invest in the four regional equity funds that were mapped to this arrangement as part of the Fund consolidation exercise in 2016.

Default Arrangement 1 aims to:

  • provide strong growth during the member’s early
    years of investment
  • protect pension savings as the member approaches
    their selected retirement date
Chevron UK Pension Plan Costs and Charges
Chevron UK Pension Plan Costs and Charges

Default Arrangement 2 aims to:

  • provide members with an equity based investment
    option that meets their risk and return requirements
  • give members the freedom to structure their own
    investment portfolio from the range available

There are not enough members in Default Arrangement 2 to require us to produce illustrations for the fund.

Below are the different funds and charges we’ve assumed in our example scenarios. A list of all the funds available in the Plan and their charges can be found in the Chair Statement on the Store.

NameCosts and charges met by members
Default 10.200% - 0.250%
Default 20.260%

The illustrations below show the projected fund values based on certain assumptions before and after charges so the potential impact of charges is clearly shown.

Members should be aware these are simply illustrations, and so the actual fund values and implication of charges for members’ investments may be different if members’ personal details or investment choices differ from those shown or the assumptions are not borne out. For further details, please refer to the DC Chair Statement found the Store section of this website and refer to Appendix 2.

Default 1

Example memberYearsBefore chargesAfter charges
New Section 'Over the Cap' members (youngest member)1£700£600
3£1,200£1,100
5£1,700£1,600
10£3,000£2,900
15£4,700£4,600
20£6,500£6,400
25£8,800£8,500
30£11,000£10,600
34£12,400£11,800

Example memberYearsBefore chargesAfter charges
New Section 'Over the Cap' members (average member)1£46,600£46,500
3£54,000£53,600
5£61,900£61,200
10£85,400£83,500
15£108,600£105,400
19£123,400£119,200

Example memberYearsBefore chargesAfter charges
DB AVC payers (youngest member)1£45,200£45,100
3£46,800£46,400
5£48,400£47,800
10£52,600£51,200
15£56,800£54,600
20£61,100£58,000
25£65,500£61,500
30£69,100£64,200
33£69,500£64,300

Example memberYearsBefore chargesAfter charges
DB AVC payers (average member)1£78,000£77,800
3£88,200£87,500
5£98,400£97,200
10£124,100£121,300
15£144,500£140,200

Example memberYearsBefore chargesAfter charges
Deferred New Section member (youngest member)1£400£400
3£400£400
5£400£400
10£400£400
15£400£400
20£400£400
25£400£400
30£500£400
35£500£400
40£500£400
41£500£400

Example memberYearsBefore chargesAfter charges
Deferred New Section member (average member)1£29,900£29,800
3£30,200£29,900
5£30,500£30,000
10£30,500£29,600
Chevron UK Pension Plan Costs and Charges
When we show figures

When projecting pension savings, we show the value in today’s terms, which means we have already taken into account the impact that inflation may have on the buying power of those pension savings. Some funds may not be expected to grow as much as inflation and so the buying power of those pension savings would be expected to go down over time.

Inflation is assumed to be 2.5% each year.

Values shown are estimates and are not guaranteed.