Welplan Pensions

Welplan is owned by the Building Engineering Services Association (BESA) group of companies, and has been offering workplace pensions since 1988.

A ‘Cash Lifestyle’ strategy is the scheme’s default investment strategy, investing in a Legal & General Growth Fund through the growth phase, and derisking starts 10 years before state pension age when assets are phased across into a Moderate Growth Fund up to five years before retirement, and then gradually towards 100 per cent cash at retirement. This reflects the typical retirement age of its target segment of building and engineering workers.

Five-year returns are not available yet, but three-year statistics show its performance as reasonable for the relatively lower risk approach taken.

Two Optional Lifestyle strategies are available for those wanted to target annuity or drawdown, or members can design their own investment portfolio by selecting from a range of 13 Welplan Pensions-branded investment funds managed by LGIM.

Retiring members wanting to buy an annuity get free access to an annuity service from Mercer. Within the scheme Welplan offers a monthly payroll for members wishing to utilise UFPLS. Flexible income drawdown is currently not available, but is scheduled for 2019.

Asset Allocation charts

Data as of 31.03.18
BenchmarkComposite benchmark
Alternatives offered to defaultDrawdown Lifestyle and Annuity Lifestyle are offered alongside the Cash Lifestyle default. 13 self-select funds
Charging structure for membersUp to 0.6% AMC
Charging structure for employersNone
Total assets as at 31.3.18£122.6m
Active members in default28,000
% active members in default99%
Transfer out to draw income?no
Approach to non-advised drawdownPlans to offer in the next 2 years
Does default invest in ESG-screened funds?May introduce within the next 2 years
Scheme administratorWelplan Ltd
Scheme investment adviserMercer
1 Year3 Year5 Year
Annualised returns before costs (%)2.63.1-
Annualised risk4.24.0-
Sharpe ratio0.60.8-
CAPA Index +/-0.69-2.34-
1 Year3 Year5 Year
Annualised returns before costs (%)3.95.8-
Annualised risk6.37.3-
Sharpe ratio0.60.7-
CAPA Index +/-1.27-1.29-