Fidelity Tacks On Buy-Out Plan Option To DC Plans

Fidelity Investments has introduced a Buy Out Plan to its range of DC product options. This will enable trustees of occupational pension schemes to transfer liabilities to individual member policies and thus, will help trustees looking to rationalise pension arrangements,

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Fidelity Investments has introduced a Buy-Out Plan to its range of DC product options.

This will enable trustees of occupational pension schemes to transfer liabilities to individual member policies and thus, will help trustees looking to rationalise pension arrangements, perhaps as the result of company reorganisation or the move to a different type of scheme.

In particular, the product is intended to accommodate the increasing trend of employers moving away from occupational DC schemes to contract-based arrangements such as Stakeholder pensions. The product can accept Protected Rights benefits arising from members having been contracted-out of the State Second Pension (S2P).

The Buy Out Plan offers members access to Fidelity’s range of DC investment funds as well as a selection of externally managed funds. Transferred members can take advantage of full access to Fidelity’s online service, Plan Viewer, and telephone support from the Pensions Service right through to retirement.

“Fidelity’s Buy-Out Plan is a valuable addition to our DC product offering. Together with our recently launched Stakeholder plan it gives us a full range of options for corporate DC clients. We have a highly experienced DC implementation team who can help with the often complicated buy-out process. Combined with high quality client service and flexible investment options, this makes the Buy-Out Plan a very attractive proposition for trustees,” Said Richard Parkin, Director of DC Product Development.

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