UK - Pension fund administrator Paymaster is seeking voluntary redundancies from staff in its payroll department, sources have told Professional Pensions.
Paymaster is looking for redundancies after losing several large pension fund clients. These include a contract it had held since 1992 with the Cabinet Office to run the pensioner payroll system for the civil service.
The source said: “Only pension payroll staff are being affected and the company is moving a lot of the work to Fleetwood in Lancashire.”
The source said around six managers had left the business but added that half a dozen was “all it takes for the business to be severely affected”.
Paymaster managing director Richard Boniface admitted the business was currently going through a period of restructuring and staffing requirements were being reviewed in conjunction with unions.
He said: “Although job losses may be expected, the intention is that they will be voluntary or as a consequence of natural wastage.”
Boniface also highlighted what he called the “significant successes of last year”, which included the implementation of the NHS Pensions Agency contract in Fleetwood.
A company spokeswoman added: “I don’t think forced redundancies would be necessary at the moment. You have a certain amount of natural wastage in any company and that will be taken into account.”
Third-party administrators have been hit by costs relating to pending statutory money purchase illustrations legislation. The government predicted the changes would cost approximately £250,000 per administrator.
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