Royal Mail Group, London, hired Equiniti as administration software provider for its new collective defined contribution plan, a Royal Mail spokeswoman confirmed.
Equiniti's platform Compendia was chosen by Royal Mail Group to meet the specific requirements of its Royal Mail Collective Pension Plan such as working out the target value of the collective retirement assets and the gap between the target and actual level of asset/liability value.
In a collective defined contribution plan retirement, income is secured by pooling plan participants' assets and investments, and participants bear the risk, in contrast to defined benefit funds where the sponsoring employer bears all the risk. At the same time, in a CDC plan the employer contribution is fixed.
Royal Mail is replacing its £10 billion ($13.9 billion) defined benefit plan with a CDC plan. It expects to start enrolling its U.K. employees into the new plan beginning in 2022.