Orbit Group is to move its employees to a contract-based defined contribution (DC) pension scheme for all future pensions provision and has closed its defined benefit (DB) scheme to future accrual as part of its plans for auto-enrolment.
The move followed a review of the landlord’s pensions strategy, which identified potential cost risks from the DB scheme as an issue.
Anne Turner, executive director of corporate resources at Orbit, said: “Our pension strategy focuses on fairness, affordability to staff, affordability to Orbit and risk to Orbit. We also want to encourage our staff to take up pensions and prepare for their own future.
“The review identified that by acting now, we could reduce the risk of potential cost increases in the future. The timing also enabled us to build in the implementation of auto-enrolment.”
Around 350 of Orbit’s 1,300 employees are currently members of the DB scheme and other local government DB schemes. The benefits they have accrued as of April 2013, when the organisation reaches its staging date will be preserved.
Orbit also plans to extend the DC scheme to all staff with a wider range of options on how much they contribute from April 2013.
Employees were made aware of the proposals through face-to-face meetings and the availability of a helpline, provided by Mercer, for further information.