Standard Life master trust has been chosen as a ‘safe haven’ provider for the thousands of people who have been victims of pension fraud.
Standard Life has been appointed by trustees Dalriada to run a new scheme for those who have received compensation for the new Fraud Compensation Fund (FCF).
The Pensions Regulator asked Dalriada to represent almost 7,000 members across over 100 distressed and defrauded schemes. The trustee along with Evelyn Partners was also tasked with finding a new pension provider for the scam victims, who no longer have a connection with the sponsoring employer.
Standard Life said that a key element to it winning this mandate was its ability to support to vulnerable members, offering dedicated help to those who had lost life savings, and putting in place steps to help them regain confidence in pension savings.
Standard Life assembled a dedicated team led by David Yule, senior business development manager, to showcase its capabilities in managing such a scheme and offering this high level of support. This was supported by the trustees of the master trust — demonstrating a robust governance framework.
Standard Life head of master trust Donna Walsh says the company is conscious of the added responsibility towards members. “Losing all your pension savings is simply unthinkable. Saving into a pension is based on trust and the expectation that all those involved, from employers and trustees to the scheme provider, are acting in your best interests.
“While we are delighted to be appointed by Dalriada, we are also hugely conscious of the added responsibility we have to members to help them feel comfortable in how we are managing their savings.”
She adds the company is developing bespoke communications and resources to help member as they take steps to re-establish their pensions savings.
Dalriada board director and chair, Tom Lukic, adds: “We were meticulous when making this selection, with Standard Life standing out in its understanding of the members’ needs, the terrible circumstances they have endured, and its ability and willingness to adapt its processes to provide members with additional support to reconnect with their pension savings.
“In appointing the Standard Life Master Trust, we are providing victims with a ‘safe haven’ provider, a trusted brand, and reassurance they deserve but have been denied for many years.”
He adds: “The FCF is a lifeline for victims and this appointment gives confidence to others in the same position, who have suffered uncertainty for a number of years, that there is now some light at the end of the tunnel.”
Phil Harwood, head of pension consultancy in the employee benefits team at Evelyn Partners adds: “We were pleased to carry out a market review and conduct research to find a pension provider with a suitable receiving arrangement.
“This required not only that we found a suitable structure to take the retrieved funds but also consider the most suitable provider and communications for people who may have lost faith in pensions and are nervous about the pension market.”
