BT selects Standard Life for Corporate SIPP

BT has appointed Standard Life to develop a Corporate Self Invested Personal Pension (CSIPP) plan for its 20,000 employees currently in trust based Defined Contribution (DC) plans.

BT, one of the world's leading providers of communications solutions and services operating in 170 countries around the world, has appointed Standard Life to develop a Corporate Self Invested Personal Pension (CSIPP) plan for its 20,000 employees currently in trust based Defined Contribution (DC) plans.

Standard Life was appointed to provide the CSIPP following a comprehensive review and consultation process by BT of all existing UK pension arrangements. The scheme will launch in April 2009 with the first people joining the scheme transitioning from existing arrangements.

Andrew Dickson, Senior Business Development Manager, Standard Life Corporate Solutions said: "Standard Life has a competitive edge in the corporate pensions market which has been acknowledged by BT. The corporate SIPP will deliver a blend of innovation, service and quality which matches the requirement of BT to introduce a cost effective, flexible and sustainable pension arrangement for employees. The scheme will set a new benchmark in the corporate pensions market through the mix of innovative contribution structure, including underpins for lower earners and generous employer matching, as well as auto enrolment, share save roll over and scheme governance.

"The corporate solutions proposition is a core part of our business and the UK market is rapidly evolving. We will continue to look for opportunities that allow us to innovate and deliver value for employers and employees."

Kevin O'Boyle, Head of Pensions, BT said: "BT selected Standard Life after a thorough review of the market place in conjunction with our professional advisers PwC. Standard Life was impressive throughout the whole process and I am confident they will provide a leading edge, cost effective solution for our employees."

The BT Corporate SIPP will:

Deliver a cost effective and long-term sustainable pension arrangement available for all existing BT DC scheme members

We believe set a new benchmark for group contract based schemes through the contribution structure

Provide no member cross-subsidy, members only pay for the SIPP functionality they use

Deliver access to a default fund for new employees incorporating a Lifestyle strategy

Match the same funds as currently offered by the DC pension to simplify the initial transition of members

Provide access to an additional range of core promoted funds

Deliver access to 156 insured funds

Provide an innovative low cost and tax efficient way to transfer employee's BT Share Plan maturities into the Corporate SIPP via a bespoke BT single share tracker fund

Allow members access to specialist Ethical, SRI and Shariah compliant funds