Marketing services firm Acxiom has restructured its group personal pension (GPP) plan to simplify the arrangement and increase its appeal for its 1,200 UK-based staff.
The company made the changes after closing its trust-based defined contribution scheme to new joiners and introducing the GPP two years ago. After the change, it was not easy for some members to transfer into the GPP because of guaranteed minimum pension promises.†
Those that could transfer into the GPP continued to receive statements relating to the benefits they had accrued in the trust-based plan. Acxiom has now restructured its GPP, in conjunction with Lorica, so all staff can transfer their funds from the trust-based scheme into the GPP.
Mel Missen, vice-president of HR, Europe, Middle East and Africa, said: “The [ previous GPP] had a different charging structure and the fund managers had to treat it as two separate schemes.
“Also, the financial years were different for the two schemes, and members were getting statements at different times. People who were trying to reconcile what they might have paid in or what they might be worth as far as their pension was concerned were only getting half the story.”
Acxiom has also replaced its previous age-related contributions structure, with matched contributions of 3%, 5%, 7% and 10%. Staff who were better off under the previous structure have been allowed to retain their existing contribution level.
The company has introduced a pensions salary sacrifice arrangement and renegotiated charges for members, achieving a 1% reduction. Take-up of the GPP has increased from 50% to 85%.
Read more articles on group personal pension schemes