L&G wins tender to run Civil Service DC schemes
Legal & General (L&G) has been selected as provider of HM Civil Service's defined contribution (DC) schemes after a competitive tender process.
The insurer was originally touted as the Cabinet Office's preferred provider in September, but it has today been confirmed it will now provide for two of the Civil Service's DC arrangements.
These include the Civil Service Additional Voluntary Contribution Scheme (AVC), currently run by Scottish Widows, Standard Life and Equitable Life; and the partnership pension alternative to the Civil Service's defined benefit scheme, currently run by Scottish Widows, Standard Life and Prudential.
A separate standalone stakeholder arrangement - currently provided by Standard Life - will be shut down, with members offered the chance to join the AVC scheme instead.
A master trust structure will be put in place by L&G for the AVC and partnership sections.
The changeover to a single provider is designed to simplify administration and governance, reduce charges paid by members, and increase access to flexible benefits.
The changes will take effect from September, although members that may be disadvantaged by the move will not be automatically transferred and will be able to continue in the existing plan.
L&G Investment Management head of DC Emma Douglas said: "We are delighted to have been chosen as the DC provider for the Civil Service Pension Scheme. The L&G Mastertrust is looking forward to working closely with the employers involved to give members access to innovative investment solutions, engaging member communications and a quality administration service."
The procurement programme was run in conjunction with the schemes' consultant Aon Hewitt.
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