UK - Bus company First Group has rationalised its 35 pension schemes into one new scheme for all its employees.
The new career average final salary scheme will have an initial active membership of 12,000 and a fund size of over £250m.
The move follows 10 months of negotiations between the Transport & General Workers’ Union and First Group over the future of its final salary schemes.
Mercer Human Resource Consulting will provide administration services and investment advice to the new unified scheme.
Mercer worldwide partner Mike Tyler said: “We seldom see new final salary arrangements being established nowadays and we are very proud to have been awarded this prestigious assignment with First Group.”
Mercer was in competition with Aon, Barnet Waddingham, Capita, Hewitt Bacon & Woodrow, Jardine Lloyd Thompson and Watson Wyatt for the administration appointment. It also went head-to-head with Aon and Hymans Robertson for the investment appointment.
First Group set up the career average scheme to try to improve staff recruitment and retention.
The T&G claims the bus company currently has an annual bus driver turnover of 30%-40%.
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