Marks and Spencer to move to bundled mastertrust ahead of auto-enrolment

Marks and Spencer is to replace its current defined contribution (DC) pension scheme with a bundled mastertrust ahead of the 2012 pension reforms.

The new arrangement rids Marks and Spencer of its complex four-tier contribution structure, replacing it with a two-tier structure which incorporates the 3% minimum employer contribution as stipulated in auto-enrolment policy.

All eligible employees will be auto-enrolled into the new M&S Pension Savings Plan from next Autumn.

Marks and Spencer used provider Legal and General and consultant Hymans Robertson to create the scheme.

A spokesperson for the retail giant said that the move was initiated in August 2010 and was confirmed recently after consultation with employees.

“It was apparent that we needed a new solution other than our current DC provision and we wanted to get on the front foot for planning for auto-enrolment.

“The new mastertrust benefits from the economy of scale that offering the same to everyone gives, but also allows us to remain in charge of investment choices.”

For more articles on preparing for the 2012 pension reforms