For immediate release: Tuesday, 29th May 2012
NOW: Pensions, the independent multi-employer trust launched in anticipation of UK auto-enrolment, today announces it has reached agreement with Ellipse, the specialist group life insurance provider, to enable NOW: Pensions to offer life insurance as an optional part of its auto-enrolment solution.
If employers require life cover for their employees as part of their auto-enrolment benefits, NOW: Pensions will offer cover from Ellipse. The advantages of offering this as a benefits package is that the cover would then be set up under NOW: Pensions’ master trust, saving employers the need to register their own trust. This means that the cover is paid free of inheritance tax should an employee die in service.
Morten Nilsson, Chief Executive Officer at NOW: Pensions said of the arrangement: “Both companies were created with the aim of developing better provision of workplace benefits across the UK. We were impressed by Ellipse’s use of technology to offer a simple and cost efficient group insurance product, which fits with our own approach and business model.”
Nilsson continued: “Employers who are preparing for auto-enrolment are generally reviewing their entire benefits package. Providing life cover is an additional benefit which companies can offer at a low cost, and which is valued by their employees. This partnership is therefore key in enabling us to give our members access to a complete retirement package of both pension provision and life cover, something which not all providers are able to offer.”
John Ritchie, CEO, Ellipse, comments: “We are very excited to be supporting NOW: Pensions in this way. Their entry into the UK market has generated a buzz, turning the UK pensions arena on its head. Ellipse and NOW: Pensions are businesses that thrive by challenging the status quo and we are very much looking forward to being part of their growth story. Furthermore, clients attracted to NOW: Pensions’ offering by its value, efficiency and ease of use can now access life cover with the same appeal to enhance their employees’ benefits.”
Ellipse’s life insurance products will be available through NOW: Pensions from May 2012.
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Notes for editors:
Slavka Bila / Jennifer Stevens /Pippa Gibb
Tel: 020 7566 9729 / 020 7566 9723 / 0207 294 3690
About NOW: Pensions
NOW: Pensions is a new multi employer trust, which was formed in November 2011 and has been operational from 1 January 2012. The investments are managed by NOW: Pensions Investments, a subsidiary of ATP in Denmark and the administration is carried out by Paymaster, an established UK third party administrator.
The NOW: Pension Trustee Directors, whose role is to safeguard the interests of members, comprises well-known industry figures with different areas of expertise:
- Nigel Waterson, former Shadow Pensions Minister
- Imelda Walsh, former Group HR Director of Sainsbury’s
- John Monks, member of House of Lords and former General Secretary of ETUC and TUC
- Christopher Daykin, former Government Actuary
- Lars Rohde, CEO of ATP Group
- Win Robbins, former Head of European Fixed Income at Barclays Global Investors
NOW: Pensions is committed to developing a better workplace pensions provision in theUKby offering a simple, systematically risk managed, cost efficient and high performance pension product that delivers better retirement savings forUKemployees. With over 45 years experience providing Denmark’s working population with stable and consistent pensions returns, NOW: Pensions is set to transfer the knowledge acquired in Denmark to the UK pension market ready for auto-enrolment in 2012, charging just £1.50 per month administration charge (reduced administration charge of £0.30 – £1.00 to be applied during auto enrolment phasing for lower earners) plus a 0.3% annual product investment management charge, with no hidden charges.
The ATP Group
Arbejdsmarkedets Tillaegspension (ATP) / Danish Labour Market Supplementary Pension is a statutory pension fund. It was established as an independent entity in 1964 with the objective of ensuring a greater retirement income for the Danish population. ATP has since developed to become the largest pension fund inDenmark. Together with the tax-financed basic state pension, ATP provides basic income security in old age for the Danish population.
ATP covers almost the entire Danish population representing 4.7 million members and 160,000 employers. In addition to the ATP Scheme, the ATP Group administers a number of pension and social insurance schemes, including several for the Danish state.
The ATP Group assets amounted to approximately DKK 579 billion (GBP 65bn) and DKK 74 billion (GBP 8.3bn) reserves at 31 December 2011. ATP invests in a wide variety of assets globally. Investment categories are broadly: equities, interest rates, credit, inflation and commodities.
Ellipse is a specialist group risk insurer offering group life and critical illness protection, with group income protection cover. Headquartered inLondonand led by CEO, John Ritchie, Ellipse is the trading style of theUKbranch of ERGO Lebensversicherung AG, part of the Munich Re Group. It trades separately from Munich Re’sUKreinsurance businesses.
Registration number: BR010594. Registered office: 15 Bermondsey Square, London SE1 3UN.
ERGO Lebensversicherung Aktiengesellschaft is authorised by BaFin (the German regulator), registration number 1184 and is subject to limited regulation by the Financial Services Authority. Details of the extent of our regulation by the Financial Services Authority are available upon request.