UK - The Ministry of Defence has conducted a rigorous tender process and selected Scottish Widows as provider of its stakeholder pensions and additional voluntary contribution (AVC) scheme for the armed services.
Scottish Widows stakeholder pension plan will be made available to over 200,000 regular personnel and 50,000 reservists within the Armed Forces. Eligible personnel will include existing members of the Armed Forces Pensions Scheme for concurrency and all reservists.
As sole provider of the AVC scheme, Scottish Widows will be the first company to offer a money purchase plan to the Forces personnel allowing them to make ‘top-up’ payments to their occupational pension scheme.
Adam Ingram, armed forces minister said: Stakeholder pensions are part of a wider government initiative to ensure there is proper pension provision for all. I am delighted that we have secured this arrangement for the armed forces. This important initiative will allow all members of the armed forces earning under £30,000, including the reserves, to bolster their pensions.
Mark Wareing, senior manager of corporate business at Scottish Widows, said: Scottish Widows is delighted to be selected as the provider for such a prestigious organisation. We are committed to providing a comprehensive administration and communications package for the armed forces and are looking forward to working closely with their pay and pensions staff in order to meet the needs of all forces personnel.
We believe that this win reaffirms our commitment to being a first-class pension provider in both the AVC and stakeholder market. This latest win for Scottish Widows comes on the back of many major appointments for both group AVC and industry-wide stakeholder schemes during 2001.
The Ministry of Defence invited tenders from all providers who were registered with the Occupational Pensions Regulatory Pensions Authority on April 6, 2001.
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