SEI has entered into a strategic partnership with Pension Insurance Corporation (PIC) to provide trustees with the means to transfer defined contribution (DC) pension benefits and additional voluntary contributions (AVC) into the SEI master trust in bulk as part of their buyout arrangements.
As a result, defined benefit (DB) scheme members with DC and AVC arrangements will be able to access the SEI Master Trust, which provides an end-to-end solution for employers delivering DC schemes.
Traditionally, DB pension scheme members may look to exchange some of their guaranteed pension income to take a tax-free pension commencement lump sum as well as a lower guaranteed pension income.
For the trustees of DB schemes considering buyout “this collaboration is important”, PIC said in a statement.
It gives DB scheme members who also have DC pension arrangements and AVCs the opportunity to access the SEI Master Trust, with its broad array of investment options, before entering a buyout arrangement.
Steve Charlton, managing director of DC for SEI’s Institutional business in EMEA and Asia, said: “In joining forces, I believe we have an opportunity to further our commitment to the institutional market and shape member outcomes for the better.”
Matt Richards, head of origination structuring at PIC, added: “This new partnership between PIC and SEI allows the trustees of DB schemes looking to enter into a buyout the ability to offer their members improved outcomes.”
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