Prudential Platinum Pension
Prudential has launched a pension scheme, which specifically aims to protect the final salary pensions of employees who transfer under TUPE* agreements from the Public to Private Sector under PFI style arrangements.
The Prudential PlatinumTM Pension scheme, helps protect people who have been members of a Public Sector scheme by providing certified benefits that are broadly similar to those that the transferring employees enjoyed before moving under PFI.
The Prudential PlatinumTM Pension is made up of two main parts:
1. A trust based Defined Benefit Scheme which allows multiple employers in the same scheme to access centrally negotiated passports covering Civil Service, NHS and Local Government pension schemes.
2. A Defined Contribution Stakeholder plan with Passport status that will allow the employers to meet the Civil Service DC option and at the same time accept members under the Single Tier workforce guidelines.
For further information, please click on the following headings:
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The Defined Benefit Scheme has a single Actuary for all employers and sections of employees. The Actuary negotiates the NHS, Local Government, Civil Service and Teachers Passports centrally each year on behalf of all participants to the scheme. The Actuary or your usual Pension Consultant can also negotiate with the Government Actuary's Department (GAD) on behalf of members' past service transfers.
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Prudential are responsible for the administration of the pension scheme and this is currently carried out by Xafinity under an outsource arrangement and the Scheme Actuary is appointed by the Independent Trustee.
As the scheme is a multi-employer insured arrangement there is no requirement for Member Nominated Trustees or management representation.
Bridge Trustees Ltd are employed as Independent Trustees to the Prudential PlatinumTM Pension in order to protect members' interests and Prudential Pensions Limited acts as the sponsoring organisation for the scheme.
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The Prudential PlatinumTM Pension is funded using conservative actuarial assumptions and an appropriate mix of assets elected by the Trustees commensurate with the actuarial assumptions is used. In the event of deficits, brought about by past service transfers occurring, these are funded for during the life of the contract. If, at the end of the contract, another company secures the contract, no underfunding can pass on to the new contract holder.
Deficits remain the responsibility of each participating employer and will need to be funded by each respective employer at the appropriate time based upon the advice of the Actuary.
Surpluses built up over time can be used, either to reduce the contribution rate, improve benefits, pay administration fees, or to fund new contracts.
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The Prudential PlatinumTM Pension is cost effective, as many employers will share the costs of trusteeship, auditing, negotiation, documentation, actuarial and compliance work. Costs are shared equitably between participating employers on a usage basis. In addition to the obvious savings of utilising the economies of scale in a centralised scheme, there is a single touch approach for all participating employers for annual Passport re-negotiation.
There are no minimum lives for each section and employers may set up as many sections as they require. No employer is ever liable for the deficit of another employer using the scheme.
The value of an investment may go down as well as up and a member's fund value in future may be less than the payments they have made.
For further information about how we can work with you, please email corporatesolutions@prudential.co.uk
* The Transfer of Undertakings (Protection of Employment) Regulations 2006 - commonly known as the TUPE Regulations - safeguard employees' rights where businesses change hands between employers.
