Zurich announced it has been named as the Service provider for Royal Mail Group’s new Defined Contribution (DC) pension scheme with immediate effect.
Zurich’s appointment follows a competitive tender process for administration and investment management services. The new Royal Mail Defined Contribution Plan is open to employees joining Royal Mail Group from April 2008 onwards and will accept contributions from April 2009. Approximately 9,000 new entrants are anticipated each year making the scheme one of the largest DC schemes in the UK going forwards.
David Etherington, Chief Growth Officer, Zurich UK Life comments: “We are delighted to be working with the Trustees of the new Royal Mail DC Plan as their chosen service provider. We believe Zurich’s appointment reflects their confidence in the strength of our proposition and our reputation for first class service as well as our knowledge and expertise in this complex area. We are confident that we can build upon this latest success to achieve our ambitious growth plans for our Corporate Pensions business.”
Zurich will be responsible for providing a bundled bespoke package of investment, administration and communications services. This will include white labelled investment funds and tailored administration services with dedicated Royal Mail service teams and help lines. All member communications will be specifically designed and targeted at the Royal Mail Group workforce.
Stephen Lefley, Distribution Director, Zurich Corporate Pensions comments: “We look forward to working closely with the Trustees and Royal Mail Group over the coming months as we embed the new scheme within the organisation. We are confident that by engaging with potential members through effective communications, we can encourage active scheme participation from Royal Mail employees.”
Jon Millidge, Chairman of Trustees and Royal Mail Group Human Resources Director comments: “The Trustee Board followed a thorough due diligence process in selecting our chosen partner for what we believe will become one of the largest DC Schemes in the UK. Zurich clearly demonstrated not only market leading service, people and robust business controls, but also a strong desire to partner Royal Mail Group and to deliver our members a scheme that we can all be proud of.”
