The Pension Protection Fund will use Aviva Master Trust to provide a DC solution for its hybrid schemes.
This new partnership was announced by the pensions lifeboat scheme, which protects DB benefits in the event of employer insolvency. Aviva will provide a DC option for hybrid schemes which have both a DB and DC element.
In total the PPF offers protection to around 9.6m members of eligible defined benefit schemes.
Aviva director of workplace savings and retirement Emma Douglas says: “We’re pleased to have been chosen by the PPF as their trusted DC pension provider. It’s important that members’ benefits are moved swiftly and efficiently to give savers certainty as to the payment of their pension benefits.
“This new partnership demonstrates our commitment to innovating for workplace pension customers and employers and growing the Aviva Master Trust.”
PPF director of scheme services Matt Bayman adds:“We look forward to working with Aviva who will ensure that we can efficiently transfer schemes and, most importantly, help us to achieve the best results for members both inside and outside of the PPF.”
Trustees will have the comfort that the Aviva master trust solution will be available for all DC benefits. However, they will also continue to have access to the wider DC market.