At BeFrank, we aim for the highest quality as well as cost control. We want to be clear about that. We always keep the costs of pension contributions apart. In this way, your clients know exactly which amount of the contributions is being invested. And how much you are paying for this.
How much will it cost?
- Pension contributions We invest 100% of the contributions in the retirement pension. It is a percentage of your salary. On their personal pension page employees see 100% of the amount they contribute.
- Insurance premiums Premiums for the death risk and occupational disability insurance are always charged separately, as are the administration fees. There are several factors influencing the premium, like interest rate.
- Administration fees Administration fees will depend on the number of employees in the pension scheme. Depending on the number of employees, you will pay between €30 and €120 per employee per year in administration fees.
- One-off implementation fees We charge a one-off implementation fee in order to implement your pension contract in our systems.
What do employees pay?
- Investment costs Controlling the investment costs is extremely important for the performance, as a one percentage point difference in investment costs can mean a 24% difference in the capital accumulated by a member between the age of 25 years and retirement. For this reason, we aim to keep the investment costs low. We only select funds with a low cost structure and with no distribution fees. The costs of investment funds, such as the management fee and the audit fees, are expressed as a percentage: the Ongoing Charges (OC) ratio. Our fund manager offsets these costs against the value of the investment funds.
- Management fee The charges that BeFrank makes for its management of the investment are known as the management fee. The annual costs are between 0.12% and 0.48% of the managed capital. They are charged monthly and deducted from the investments.
- Acquisition fee Investments in a lifecycle are free from acquisition and sale fees (transaction costs). We charge €3 per transaction where an employee has chosen DIY investment.
- Costs in the event of a divorce It is important that the administrative consequences of a divorce are processed accurately. For this work, we make a one-off charge of €150 both for the employee and for the ex-partner.