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Annual management charges are restricted to 0.85% of the value of the scheme.(The regulatory maximum for stakeholder pensions is 1%);You will receive tax relief on contributions, e.g. if you invest £50 per month then£64 will be added to your fund;You can make contributions to a stakeholder pension for children;Pension paid through an annuity. You do not need to buy the annuity with yourstakeholder provider. You can shop around to see what other companies offer;Optional life cover. The cost is dependant on how much you choose to buy, yourgender, age, and health when you start the cover;You can buy your annuity anytime between your 50 th and 75 th birthdays;25% can be paid on retirement as a tax free lump sum. (This option is not availableon an AVC unless it was started pre-April 1987.)Schemes are regulated by the Financial Services Authority (FSA) and Occupational PensionRegulatory Authority (OPRA). The FSA makes sure information is fair, clear and notmisleading. OPRA make sure that the scheme you choose meets stakeholder pensionstandards and is well run.For further information on Stakeholder Pensions please contact the TUC StakeholderPension Helpline on 0845 070 6666 or visit the website at www.prustakeholder.co.uk/tuc.You can also find out further information on stakeholder pensionsfrom the following organisations, the Department of Work and Pensions (www.dwp.gov.uk)and the Financial Services Authority (www.fsa.gov.uk).Frequently Asked QuestionsI am already a member of the Scottish Teachers’ Superannuation Scheme. Can I start astakeholder pension as well?As long as your total earnings in at least one of the tax years since 6 April 2000 has notbeen greater than £30,000 per annum you can start a fund to top up the benefits from theSTS scheme.What happens if my earnings go above £30,000?You must certify your earnings to the Inland Revenue from time to time. You can select ayear when you earned less than £30,000 and for the 5 years following you can continue tocontribute into the scheme. After this period you may have to stop paying into yourstakeholder pension. You do not have to certify every 5 years, you can choose a shorterperiod if you think it might benefit you, e.g. if you think in year 3 that your salary will goabove £30,000 the following year you can recertify and then get another 5 year period.I am a member of the Scottish Teachers’ Superannuation Scheme. Should I leave thescheme and start a stakeholder pension?It is usually best to stay in the STSS. Your benefits are guaranteed and linked to your finalsalary. Your STSS pension is not subject to the fluctuations of the investment market inthe same way as AVCs, personal and stakeholder pensions. Your employer also makes asignificant contribution to your occupational pension.What benefits will I get?99September 2012