With its unique model, the FCT Group is able to propose solutions enabling Affiliated Companies to benefit from an optimal fee structure induced by the cost synergies. The fee structure applies to the overall FCT Group and, by way of simplification, the explanation below refers to both the FCT and the FCT 1e.
Administration
The annual administration fees for technical management, book-keeping and access to the secure portal are invoiced periodically on an annual flat-fee basis, based on the number of members and the complexity of the services provided. The fees of the supervisory authority (ASFIP), external auditor, accredited pension expert and the Boards of Trustees are included in this flat-fee. When affiliation begins or ends during the year, these fees are invoiced pro rata temporis.
Reinsurance and distribution
Reinsurance of death and disability risks is invoiced periodically on a flat-rate premium basis calculated at 1st January each year. This premium includes management fees for reinsurance, distribution activities, takeover of new clients, presentation of annual accounts to the Pension Committees, communications and day-to-day personalized support to HR departments and Insureds (services or projects not included in the ordinary management are invoiced separately), changes to the pension plan(s) and absence management (work disability).
Pension Funds' Insurance brokerage
The FCT and the FCT 1e appoint an exclusive insurance broker for the negotiation and administration of the reinsurance contracts of the Foundations and the Pension Funds.
If a Pension Fund requires the services of a qualified, licensed insurance broker to receive appropriate personalized advice on the definition of pension plan, benefits coordination or information to the Insureds, the broker’s remuneration (brokerage commission and any fees) must be agreed in advance between the Fund’s Pension Committee and the broker and it must be approved by the Management Support Unit of the Foundations in full transparency and based on a contract.
Asset administration and financial compliance
Asset administration fees under the direct responsibility of the Foundations (cash management, monthly portfolio rebalancing of the Pension Funds affiliated to the FCT and the individual investment strategies of the Insureds of the FCT 1e, performance allocation, securities accounting, reporting via the secured communication platform, calculation of investment fluctuation reserves, etc.) are calculated according to the assets under management and the complexity of the services provided to each Pension Fund. These fees include services related to monitoring compliance in asset management.
Asset management
Custodian fees, management fees and investment advisory fees depend on the conditions set by the banking partners and/or consultants chosen by the Pension Committees.
Other charges
Charges related to actuarial and consulting services outside the ordinary regulatory framework (partial liquidation, specific actuarial studies, personalized comprehensive ALM studies, legal advice, etc.) are invoiced to the the Fund’s Pension Committee on a real-cost basis.
