Select U.K. retirement plan participants who have been defrauded of their savings will receive benefits through Standard Life's master trust in a newly created plan.
The plan will take on affected members receiving restorative compensation from the Fraud Compensation Fund, a U.K. body managed by the Pension Protection Fund, London, which looks to cover the financial losses of eligible occupational retirement plans “due to dishonesty”.
The plan will initially include 7,000 participants across more than 100 defined contribution plans that have been impacted by fraud.
The appointment of Standard Life follows an industrywide market review conducted by Evelyn Partners on behalf of Dalriada Trustees — the trustee appointed by The Pensions Regulator for the 100 plans. No employers were involved in any of the decision-making in the incorporation of the defrauded participants into the Standard Life master trust.
The level of retirement benefits paid to participants is determined by the FCF in line with legislation. The compensation is then paid to the plan and Dalriada determines how that compensation is apportioned between participants.
For its successful bid, Standard Life assembled a team led by senior business development manager David Yule, to showcase its capabilities and provide support to the impacted pension plan members. The trustees of the Standard Life master trust were also involved in assisting the bid process and securing the appointment.
“Losing all your pension savings is simply unthinkable," Donna Walsh, head of master trust at Standard Life, said in the news release. "Saving into a pension is based on trust and the expectation that all those involved, from employers and trustees to the scheme provider, are acting in your best interests."
“While we are absolutely delighted to be appointed by Dalriada, we are also hugely conscious of the added responsibility we have to members to help restore their faith in pensions and to help them feel comfortable in how we are managing their savings. We are extremely proud that we have this opportunity to help our new members in this way.”
Standard Life is part of savings and retirement firm Phoenix Group.
