UK - West Midlands Pension Scheme is set to be the first English local authority to offer its employees an additional pension through the TUC stakeholder scheme.
The scheme, which said it was in an “advanced stage” of consideration, is searching for a more appropriate staff AVC after many workers became disillusioned with the product following the Equitable saga.
The TUC stakeholder scheme – run by Prudential – is constituted as a trust, making it more suitable for local authorities which cannot officially designate a stakeholder scheme.
TUC co-ordinator of the stakeholder pension scheme John Calland said: “Local authorities – either as administrators of the local government pension scheme or as employers of staff working within local government – don’t have statutory powers to formally designate a stakeholder scheme for their staff. “
To avoid this, administering authorities and employers allow the TUC to send and present information to local authority staff while not formally designating a scheme.
The model is already successfully used in Northern Ireland where presentations are currently underway.
By Jonathan Stapleton
This week's edition of Professional Pensions is out now
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