Qinetiq, a defence contractor with more than 6,000 staff in 30 locations across the UK, introduced a group personal pension (GPP) to replace its trust-based DC scheme in April. Run as a bundled arrangement with Zurich Life, the GPP has 2,500 members who are already auto-enrolled.
Qinetiq intends the GPP to be the qualifying scheme for auto-enrolment. It will be working with its adviser, Punter Southall, on the contribution structure and definition of pensionable earnings, so it can certify the scheme before its staging date in March 2013.
Andrew Gibson, group pensions manager, says the company will save about £80,000 in the first year of the GPP’s operation and £150,000-£250,000 in each subsequent year, largely from cost savings related to administration, governance costs and professional fees.
Members are currently defaulted into a balanced lifestyle investment fund and must go online if they want to select another fund, but the company might need to introduce a waiting period, with new joiners defaulted into a cash fund.
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