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Preci-Spark Limited G.M.P.P. Chair Statement

Introduction
Beechwood Trusteeship & Administration Ltd is the sole trustee of the Preci-Spark Ltd G.M.P.P.
The Plan is ‘fully insured’ with Royal London. They undertake all the investment and administration functions. The Plan was established in 1988.
All members in the G.M.P.P. are deferred members.
This Chair’s Statement applies to the year ending 31st December 2023.

Statement of Investment Principles
The Statement of Investment Principles is attached. Please see the attached implementation statement for further information regarding this.

Default Investment
It is understood that because the G.M.P.P. is not workplace pension arrangement there is no obligation to review the default investment. However, we have reviewed this and consider that the Balanced Lifestyle Strategy (Drawdown) is the most appropriate and complies with the Statement of Investment Principles.

Return on Investments
The investment return for year ending 31st December 2023 for the investments underpinning the Balanced Lifestyle Strategy (Drawdown) is attached. This just covers the default investment fund. The annual member benefit statement details the accumulated investment return achieved on each members’ pension fund.

Core Financial Transactions
There are no active members in the scheme so no ongoing contributions to monitor.
The administration of the settlement of member benefits by Royal London Ltd is considered very poor. The trustee will be investigating alternatives.

Charges
Royal London charge each members’ fund 0.60% pa for the administration and investment of the G.M.P.P. An example of how these costs typically affect a members’ eventual fund is attached.
The cost of the trustee is paid by Preci-Spark Ltd.

Value for Money Assessment
The G.M.P.P. charges are not considered excessive.
We have researched online the costs of similar pension schemes and consider the charges applying to the G.M.P.P. are not unreasonable. It is acknowledged that the administration charges for more modern pension arrangements (for example, workplace pensions) can be cheaper.

Administration and Governance
We have no reason to believe the core data in inaccurate.
Beechwood Trusteeship & Administration Ltd has been providing trusteeship of occupational pensions schemes since 2004. We keep abreast of changes in legislation and best practices. We are independent of Preci-Spark Ltd and Royal London.

Donald Beech
Director
Beechwood Trusteeship & Administration Ltd
0116 2765079
don.beech@beechwoodssas.com

1st July 2024

Preci-Spark Ltd (1984) Retirement Sccurity Plan Chair's Statement

Introduction
Beechwood Trusteeship & Administration Ltd is the sole trustee of the Preci-Spark Limited (1984) Retirement Security Plan.
The Plan is ‘fully insured’ with Phoenix Life Ltd. They undertake all the investment and administration functions. The Plan was established in 1984.
All members in the Plan are deferred members.
This Chair’s Statement applies to the year ending 31st December 2023

Statement of Investment Principles
A Statement of Investment Principles is not appropriate for the reason explained in the paragraph below.

Default Investment
There is no investment choice for either the trustee or member within the Plan. The only investment is in the form of ‘traditional’ with-profits. This means that each member has a guaranteed fund at Normal Retirement Date based on their historic contributions, to which annual and possibly a terminal bonus may be added.

Return on Investments
The annual bonus declared for the year ending 31st December 2023 was 3.00%

Core Financial Transactions
There are no active members in the scheme so no ongoing contributions to monitor.
The administration of the settlement of member benefits by Phoenix Life Ltd is not particularly impressive but is adequate.

Charges
The administration costs of the Plan are incorporated within the with-profits contract. This can vary slightly depending on age, but on average is approximately 0.60% pa for the year ending 31/12/2023. This is effectively deducted before any annual bonus is declared by Phoenix Life Ltd. Specific details are contained in each members’ annual benefit statement.
The cost of the trustee is paid by Preci-Spark Ltd.

Value for Money Assessment
The Plan charges are not considered excessively high. The declared investment return has improved considerably increasing from 0.05% in 2022 to 3.00% (2021 was also 0.05%). It should also be considered alongside that there is a minimum guaranteed fund value and that will have allowed for some core growth.
The Plan also provides a valuable Guaranteed Annuity Rate (approximately 10%) and considering the average age of the remaining membership we do not consider it appropriate to surrender this to move the investment elsewhere.
We have researched online the costs of similar pension schemes and consider the charges applying to the Plan are not unreasonable. It is acknowledged that the administration charges for more modern pension arrangements (for example, workplace pensions) can be cheaper.

Administration and Governance
We have no reason to believe the core data in inaccurate.
Beechwood Trusteeship & Administration Ltd has been providing trusteeship of occupational pensions schemes since 2004. We keep abreast of changes in legislation and best practices. We are independent of Preci-Spark Ltd and Phoenix Life Ltd.

Donald Beech
Director
Beechwood Trusteeship & Administration Ltd
0116 2765079
don.beech@beechwoodssas.com

1st July 2024

Preci-Spark Ltd G.M.P.P. Implementation Statement Year Ending 31st December 2023

Introduction
The Trustees have reviewed the extent to which their policy from the Statement of Investment Principles (SIP) was followed over the year and this statement confirms the outcome of that review.

Relevant Investments
The Scheme’s assets are limited to investment funds offered by Royal London who administer the scheme. The Trustees primary investments for member funds is in the Balanced Lifestyle Strategy (Drawdown) fund. This essentially reduces the investment risk and volatility as members approach normal retirement date. 

Monitoring Compliance
The Balanced Lifestyle Strategy provides for equity and higher risk investments at lower ages moving to guilts and cash at higher ages. The trustees have no direct control over the underlying investments of the fund, but we believe they are fundamentally compliant with the SIP.

Review of Statement of Investment Principles
The Trustees have reviewed the SIP which provides for a broad range of investment areas to meet members needs. We have not made any amendments to this during the year.
Members may wish to note that should they so desire they are able to self-select alternative investments from Royal London from a range of alternatives which meets their personal needs if they consider the Balance Lifestyle Strategy inappropriate.

Donald Beech
Director
Beechwood Trusteeship & Administration Ltd
0116 2765079
don.beech@beechwoodssas.com

1st July 2024

Statement of Investment Principles
Standard Typical Member Data
Net Investment Return