UK - Clerical Medical has been appointed as AVC provider to the £1.5bn Coats Viyella Pension Plan.
This follows the Coats Viyella’s £4m withdrawal from with-profits Equitable funds and the negotiation of a favourable 7.5% exit penalty in March – a fee that the trustees reimbursed to the affected members from the surplus in the scheme.
Equitable is retained as a unit-linked AVC provider to the Coats Viyella plan but existing members will be given the right to switch to Clerical Medical should they wish.
Coats Viyella Pension Plan group pension manager and secretary Reinet Quinn said: “We have taken on Clerical Medical because they have a good administration system that is already in place and useable – important as there are a number of people who are nervous about remaining with Equitable.”
Coats Viyella is also organising a training day for their trustees to discuss the implications of the Myners’ review on their scheme. The training day will take place in November with lectures by a lawyer, an investment manager and a consultant.
The Coats Viyella Pension Plan is advised by William M Mercer.
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