The Pension Protection Fund (PPF) has selected Aviva to provide a defined contribution (DC) solution for its hybrid schemes.
The PPF protects 9.6 million members of defined benefit (DB) pension schemes in case of employer insolvency. However, some pension schemes have both a DB and DC element to them.
Under the partnership, benefits of DC members of the hybrid schemes will now be protected by Aviva’s master trust.
While Aviva’s master trust solution will be available for all DC benefits to trustees, they will also continue to have access to a wider DC market, Aviva said.
Matt Bayman, director of scheme services at the PPF, said: “We look forward to working with Aviva who, through their master trust solution, will ensure that we can efficiently transfer schemes and, most importantly, help us to achieve the best results for members both inside and outside of the PPF.”
Emma Douglas, director of workplace savings and retirement at Aviva, added that it was important that members’ benefits are moved swiftly and efficiently to give savers certainty as to the payment of their pension benefits.
She said: “This new partnership demonstrates our commitment to innovating for workplace pension customers and employers and growing the Aviva master trust.”
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