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.”
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