On the go: The £32bn Railways Pension Scheme has appointed Legal & General to provide members with access to a drawdown arrangement within its WorkSave Pension Mastertrust.
This arrangement is available to the scheme’s defined contribution members and the additional voluntary contributions of defined benefit members.
The flexible retirement solution will provide members with access to a bundled drawdown arrangement, which is underpinned by the L&G Retirement Income Multi Asset Fund.
Chris Hannon, chair of the trustee board, commented: “We know that more members are exercising pension freedoms than ever before, and an increasing number are using drawdown arrangements.
“Historically, members would have been exposed to the open market, where finding the right product can be difficult and charging structures may be penal.”
He continued: “We are delighted to offer members a retirement option that is both competitively priced and allows them to benefit from the scale and expertise of L&G, which is one of the most proven and trusted providers in the market.”
The new arrangement launched on April 30 2021.
The fund confirmed that this newly introduced drawdown facility does not change the existing options available to DC members and those with AVC funds at retirement.
“In line with the pension freedoms, members can still choose to use their retirement benefits in a way that suits their needs, and they are still free to choose their own provider,” the fund said.
On the DB front, the scheme explained that the facility is only available to DB members via a transfer. However, it noted that “the trustee’s position remains that for most members, transferring out of the scheme is unlikely to be the best option, but for the few members for whom it is, this option is available”.
This article originally appeared on MandateWire.com
