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B&CE to keep Partnership single-tie deal for small pension pots

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.”

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Guide: how to… communicate with your pension members

Effective communication of your pension scheme is a large part of getting auto-enrolment right. Delivering the same message to all employees is not necessarily the way to go. To assist you with the communication of your pension scheme, we have provided some key areas to think about, such as:

  • What to consider when segmenting your workforce
  • How to communicate to pension scheme members at the right time in their member lifecycle
  • What topics you should be discussing with your pension members
  • The new pension freedoms and the importance of communicating them

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