UK - Transport giant First Group has set up a career average final salary scheme in a bid to boost staff retention.
Some 9000 staff who are members of its defined contribution plan now have the option of entering the career average scheme.
New staff will also be eligible to join the career average scheme after a two-year qualifying period.
The firm set up the scheme to try to improve staff recruitment and retention. The Transport & General Workers’ Union claims First Group currently has an annual turnover of bus drivers of 30 to 40%.
As part of a wholesale pensions restructure at the firm, First Group’s seven DB schemes will be consolidated into one nationwide scheme which is to be closed to new members.
The career average scheme will be rolled out to employees this summer.
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.