G4S has converted its contracted-in money purchase pension scheme (CIMP) into a group personal pension (GPP).
The 2,251 active members of the CIMP at the security solutions firm were offered membership of the new GPP. Over 98% of the active CIMP members have taken up the option to transfer, with 95% choosing the default investment option. This was designed to mirror the default investment option available under the CIMP.
Due to the shift and working patterns of many of its employees, G4S placed a strong emphasis on developing a written communications strategy to ensure all scheme members received information. The company also wanted to ensure that the entry requirements were straightforward both for employees and the various payrolls that were administrating new joiners and making contribution payments.
The GPP is provided by Friends Provident, while Punter Southall were employed as advisers.
Sally Kessen, UK pensions manager at G4S, said: “Through Punter Southall’s ability to use a commission offset deal we were able to fund our conversion from a CIMP to a GPP without increasing the cost of the GPP to members.