B&CE will retain its single-tie annuity deal with Partnership for members with savings worth less than £20,000 but plans to offer a whole of market shopping around service for people with bigger pension pots.
In March this year, Money Marketing revealed the pension provider – which opened its doors to people outside the construction industry for the first time in November last year under The People’s Pension brand – planned to review the arrangement with Partnership.
This followed confirmation from the Association of British Insurers of plans to reform its shopping around code of conduct.
B&CE director of customer solutions Jamie Fiveash says: “The arrangement with Partnership works very well because we get quite a lot of small pots. If you go to the open market, you will struggle to get a quote for a pension worth less than £5,000. Because of that, we will retain the single-tie arrangement for pensions up to a value of £20,000.
“We are looking at annuity bureaus that can give us access to the whole of the market for people with bigger pension pots.”
Fiveash says B&CE expects to have the new arrangement in place within 12 months.
Radcliffe & Newlands chartered financial planner Mel Kenny says: “This set up allocates resources sensibly yet still offers a good overall service relative to the demands of all. The market is moving in this direction.”