RPMI Railpen, London, hired LV= to provide financial planning and retirement advice to participants of the £32 billion ($45.1 billion) railways pension schemes.
LV='s retirement advice service unit will support both defined contribution and defined benefit participants. Railpen previously used different providers for DC and DB-related advice. The spokesman did not name the providers nor provide a split between DB and DC assets.
Railpen wanted a new partner to strengthen the service and strike a better balance between cost and quality, the spokesman said. RPMI itself has never offered advice.
Participants will have access to advice on retirement plan options and future investment needs. The advisers will also cover income drawdown, offering access to more than 80 investment funds from a number of managers.
"This is a vital step forward in the continued evolution of our range of services for members," Paul Sturgess, managing director, pensions benefits at Railpen, said in a news release. "Our aim is to provide members with the guidance and information they need to support their financial decision-making; for those members for whom advice is appropriate, we are really proud to be able to offer this option to them."