Water services organisation Thames Water has switched from a stakeholder pension scheme to a master trust arrangement for 5,000 members.
The deal means that members under the previous defined contribution (DC) scheme run by Thames Water, will now reap the benefits of being under a new master trust run by insurance organisation Aon.
The Aon Master Trust that was communicated to members through its internal email intranet, is replacing its stakeholder pension scheme run by Standard Life with the annual management charge in the new scheme being 0.28% of the member’s pension pot, compared to the former scheme that was 0.42%. Thames Water pays in twice the members' contribution up to a maximum business contribution of 12% of basic pay.
Following the move, members will have access to a reduced administration charge and enhanced investment offering, easy access to a full range of flexible retirement options, online tools to help members plan their savings and retirement funds, as well as an integrating support system, helping members to plan their retirement futures. Thames Water still currently has two defined benefit (DB) schemes that are closed to new joiners but are open to future accrual.
Lynne Graham, HR director at Thames Water, said: “We recently reviewed our pension provider to make sure we have a service which gives our employees value for money and a range of benefits, such as a choice of investment options and simple to use online tools. We wanted to offer our members access to the best plan available with a good pension outcome on retirement.”