The Prudential has launched a new platinum protection pension scheme aimed at protecting final salary or defined benefit of pensions of employees transferring under the TUPE agreements from the public to the private sector.
The scheme aims to protect people who have been members of a public sector scheme. It provides certified benefits similar to those that the transferring employees had before moving under PFI.
The platinum pension is comprised of two areas – a direct benefit and a defined contribution stakeholder plan. The DB scheme will have a single actuary for all employers and sections of employees.
The NHS, local government and civil service passports will be negotiated centrally on an annual basis on behalf of all participants.
Prudential director-general of the business services association Glyn Jenkins says: “Members of Platinum will benefit directly from the ease and speed of arranging transfers of employees, as well as from substantial reductions in administration costs through the sharing of resources.”