Aberystwyth University, Aberystwyth, Wales, hired Legal & General Investment Management to design and implement a new defined contribution plan, said a spokeswoman for the university.
The university has an £82 million ($122.5 million) defined benefit fund, the Aberystwyth University Pension and Assurance Scheme.
A notice filed on European procurement website Tenders Electronic Daily said a review of the pension fund and a subsequent consultation exercise resulted in a decision to move to a defined contribution plan starting April 1. Legal & General was hired last month and its contract started Wednesday. The procurement process began in October.
Members of the DB fund will transfer to the new DC plan, and eligible new recruits will also join. The notice said the university will contribute 10% and participants currently contribute 6.35% of their salaries, although this can vary.
The spokeswoman said DB assets will not transfer to the new DC plan, but will be used to pay participants’ benefits accrued through March 31.