UK - Retail giant Marks & Spencer is preparing to "go live" with its defined contribution scheme from April 1.
The plan, run by Threadneedle Investments and Scottish Life, offers a two-for-one contribution rate and is open to all M&S staff who have been with the firm for more than one year.
Group pensions manager and secretary John Peachy said the firm opted for a one-year vesting period because of the high turnover of staff.
He added that the pensions team had embarked on a major communications programme during the past year in an attempt to encourage new staff to join the scheme.
But Peachy conceded that he expects the majority of take-up to come through word-of-mouth.
“Most of our staff are part-time female workers. You have to convince them to fork out part of their pay to come into the pension scheme.
“Gradually, as they realise the benefits of the scheme, they will start to join, but it is word of mouth as well as our own communication that will make this happen.”
Threadneedle will be offering active, passive and specialist active funds through its multi-manager product and the administration will be provided by its partner, DC Solutions, the specialist DC administration division of Scottish Life.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.