extra charges on pension fund? what do I do?

[vanordinaire]

I've had a letter from one of my pension providers. One of their funds (property)hasn't been performing very well so they are going to change it. The new 'improved' fund will incur an additional cost to administer. They are giving me the choice of paying the extra percentage or choosing a different fund to put my money in at no additional cost.
My take on this is that they are already getting paid at an agreed rate to administer this fund and any changes they make should be at their expense, not mine. I'm thinking of replying that I want my money to remain in the fund but that I don't authorise them to take an additional charge over and above what was contracted initially. How will this be received?

[PurpleMoonlight]

They will refuse.

[vanordinaire]

PurpleMoonlight said:

They will refuse.

I'd imagine they'd like to refuse, but what grounds would they have? We have a contract with an agreed rate of recompense for them that I don't want to increase.

[nyt]

If you do have to change fund 'without charge' make sure that there's no bid/offer spread involved.

[Jockman]

vanordinaire said:

I'd imagine they'd like to refuse, but what grounds would they have? We have a contract with an agreed rate of recompense for them that I don't want to increase.

You sure the contract doesn't have the usual all-encompassing clause about them changing anything at anytime?

Additionally, would you prefer to stay in a poor fund with low charges or have the option of a potentially better fund at a slightly higher charge?

[PurpleMoonlight]

vanordinaire said:

I'd imagine they'd like to refuse, but what grounds would they have? We have a contract with an agreed rate of recompense for them that I don't want to increase.

Is the fund being operated exclusively for you, or have you just purchased some units in it? I would bet the latter.

They will definitely have the right to terminate the fund at their discretion which they appear to be doing. They have offered you alternatives, if you don't like them you can take your money elsewhere.

[bestinshow]

I've had the same letter, also not sure what to do. The performance of the fund isn't great, this may be the kick I need to move it.

[Ginge R]

What are the two funds in question, and more, are either suitable anyway?