Clerical Medical has introduced a cafeteria style company pension plan that offers a menu of group personal pensions, group money purchase schemes and group additional voluntary contributions packages.
Futureproof is designed to cater for the retirement needs of employees at all levels, from directors to part-time staff. Employees can move between the various packages – for example if they are promoted and their needs change – and they can also take their plan with them if they change jobs.
Twenty unit-linked funds, including an ethical fund, are available to clients and there is a choice of two with-profits funds one for single premiums and one for regular contributions. The bonus rate for both with-profits funds is 5.50 per cent.
Clients can switch between funds without charge and may choose to go for the lifestyle investment option, which shifts between cautious, balanced and adventurous risk profiles depending on how near to retirement the client is.
Futureproof displays many hallmarks of a flexible pension plan and its use of with-profits within the framework of stakeholder's one per cent annual management charge is a plus. However, it does not have any external fund links and this is one area where employees may wish they had more choice.