Standard Life Master Trust has been chosen to be a ‘safe haven’ provider for thousands of defrauded pension savers.
The pension provider will run a new scheme for pension members who have been the victims of scams and are receiving restorative compensation from the Fraud Compensation Fund (FCF). It will help members to regain access to their pension savings where they no longer have a connection to the sponsoring employer.
Standard Life was selected to be a ‘safe haven’ provider by Dalriada, the trustee appointed by The Pensions Regulator to represent almost 7,000 members across over 100 distressed schemes.
The appointment follows competitive industry-wide market review conducted by Evelyn Partners on behalf of Dalriada Trustees.
Understanding trauma
To be appointed as a ‘safe haven’, Standard Life had to show its technical ability to offer this type of scheme, demonstrate a deep understanding of the trauma and upset victims had experienced, and be able to help restore members’ trust and confidence in pension savings.
David Yule, senior business development manager at Standard Life, led a team that showcased the providers capabilities and how it supports vulnerable customers. The trustees of the Standard Life Master Trust demonstrated the trust’s robust governance framework as part of this process.
Donna Walsh, head of master trust at Standard Life, said: “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.”
Restoring faith
Walsh said: “While we are absolutely delighted to be appointed by Dalriada, we are also hugely conscious of the added responsibility we have to members to help restore their faith in pensions and to help them feel comfortable in how we are managing their savings.
“It’s a unique challenge where we are providing a range of wrap-around care and developing bespoke communications and resources to help them as they take steps to re-establish their pensions savings.”
Reconnect savers with pensions
Dalriada board director and chair Tom Lukic added: “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 them 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. The FCF is truly 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, advisers on the appointment of Standard Life, said: ““We were pleased to be asked 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. We are proud to have helped Dalriada find a receiving arrangement with an excellent governance framework and effective communications from a reputable firm with an established pension master trust.”
