The Royal Mail Group has appointed EQ to be the pension software supplier for its new collective defined contribution (CDC) pension scheme.
EQ’s pension administration software Compendia was chosen following the selection process. EQ (formerly known as Equiniti) says this proprietary platform has the ability to adapt and innovate to meet the specific requirements of this new CDC scheme, the first to be launched in the UK.
The scheme, known as the Royal Mail Collective Pension Plan (CPP) aims to offer its UK employers a retirement solution that sits between traditional DB and DC offerings. Contributions will be fixed for both employers and employees and risk is shared across members. Proponents of this scheme says this offers the opportunity for higher income in retirement, thanks to this risk sharing – although retirement income is not guaranteed as it is under a DB scheme.
EQ is one of the largest providers of outsourced pension administration and software in the UK. It already provides services to a number of private and public sector clients.
EQ Paymaster CEO Duncan Watson says: “We are delighted to be selected as the supplier for Royal Mail and are excited to be part of such a prestigious development in the UK pension market. There is a growing appetite for reduction in risk for pension schemes, and CDC offers the perfect opportunity for schemes and members to avoid market volatility with their combined savings.
“We have a strong track record of delivering solutions for complex pension schemes and this appointment is testament to the expertise of our team, the sophistication and quality of our technology and our market experience.”