When you invest your savings in a fund, each fund normally has an annual management charge. Annual management charges are reflected in the unit price of the fund or funds that your pension account is invested in. They are paid from your pension account on an annual basis. The annual management charge includes a number of expenses such as administration costs and investment charges, as well as expenses incurred by the fund manager. If a fund is actively managed (the investment manager uses their expertise to select funds which they think will outperform the market or benchmark), the annual management charge is likely to be higher than a passively managed fund. (In a passively managed fund, the investment manager aims to match the market return or benchmark.)
Annual management charges vary from fund to fund and the Trustees work to negotiate favourable annual management charges for the funds available.