International packaging manufacturer Nampak has chosen a group stakeholder pension plan as an alternative to a trust-based money purchase scheme for the Leeds-based employees of its Cartons Division.
Advised by HSBC Actuaries and Consultants, the key objective of this move was to encourage self-determination among employees when it comes to their retirement planning. However, Nampak was also concerned about the increasingly onerous regulatory regime which trustees must comply with and the associated cost of occupational schemes.
“Giving individual choice and flexibility to employees is the key, particularly in terms of how and when they take their retirement benefits,” says Kay Smith, human resources services manager for Nampak. “We felt that this was best achieved by installing a contract based group stakeholder pension plan. At the same time, we wanted to make sure that employees understood that the company was not ‘cutting the umbilical cord’ by adopting a contract based approach. To remedy this, HSBC Actuaries and Consultants successfully developed and implemented a communication programme at the time of the transition.”