The Ensign Retirement Plan has reduced its annual management charges and introduced an income drawdown facility, in a bid to better prepare members for retirement.
The shipping and maritime industry-wide defined contribution (DC) master trust lowered its annual charges from 0.36% to 0.31% on 1 April.
The in-scheme income drawdown facility will mean members no longer having to transfer their money out of the plan in order to use income drawdown, as well as a tailored financial guidance and advice offering, to help members in their transition from work to retirement. The move comes alongside the three-year anniversary of the pension freedoms.
The not-for-profit, occupational scheme's chief executive Andrew Waring said a well-run, sustainable pension scheme should not only provide a decent retirement income for members, but should benefit employers by providing them with an effective aid to recruitment and retention, while keeping costs down. "This reduction in charges demonstrates our commitment to reducing the pension burden for employers, while ensuring scheme members keep as much of their savings as possible," he said.
"And by introducing an in-house income drawdown facility along with personalised guidance for members approaching retirement, we are providing tangible proof that a well-run DC pension scheme can make a real difference to the overall retirement planning of its members."
The master trust is run by, and for, the maritime industry. It has no shareholders, and therefore, does not pay dividends. Since its launch in 2015, over 80 maritime industry employers have signed up to the scheme, along with around 2000 employees. By July this year, the scheme expects to have 4,300 members.
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