International towage and salvage company Svitzer implemented a corporate platform from Hargreaves Lansdown in July 2011 after closing its defined benefit (DB) pension scheme.
Its primary aim was to replace the myriad trust and contract-based pension schemes it had inherited after a number of acquisitions with one defined contribution (DC) scheme that was more attractive than a standard company pension scheme. Accordingly, Hargreaves Lansdown created a platform featuring a self-invested personal pension (Sipp), for which employees can choose the default fund or make their own investment selections; an individual savings account (Isa); and a fund and share account.
Employees contributing more than 15% into the Sipp are able to contribute additional funds into an Isa rather than the pension scheme, which enables them to invest through payroll into a short-term savings vehicle, thus avoiding having to lock away their money until retirement.
As part of the service, Hargreaves Lansdown has provided Svitzer employees with a range of financial education to help them understand the offering and its benefits, and a range of interactive tools with which to manage their investments on a bespoke website. The results speak for themselves: 570 employees have joined the Sipp, which is 10% up on membership to Svitzer’s previous schemes; 25% have selected their own investments rather than using the default fund; and 5% of members have so far joined the corporate Isa through payroll.†
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Svitzer was the winner of the ‘Most effective pensions change strategy’ at the Employee Benefits Awards 2012 for its launch of a corporate wrap.
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