The BBC is seeking a pension plan provider to operate a single Defined Contribution (‘DC’) arrangement via a Group Personal Pension Plan (‘GPP’) product. The arrangement is known as LifePlan, and is predominantly for staff that joined the BBC after 30 November 2010.It is also available to staff who joined before 1 December 2010, although ordinarily employees who joined before this date would be members of either the BBC Pension Scheme (a defined benefit arrangement).
The Pension Plan Provider will select and manage range of funds that will feature in LifePlan/GPP, and provide a portal for BBC employees to choose/manage their pension savings.
The agreement will have an initial term of 5 Years (plus two one year extensions at the sole discretion of the BBC (the ‘Term’) commencing on 1.7.2017 and ending on 30.6.2022. The BBC retains the right to give notice to the provider at any point throughout the Term in line with the termination clause in the Key Commercial Legal Principles document that forms part of the Procurement Documentation.
As at 31 March 2016, there were c4200 employees who were members of LifePlan. It is anticipated that an additional net c550 employees will join LifePlan for each subsequent year of the agreement, and that funds under management in the existing scheme will be approximately 100 000 000 GBP by March 2017. There is no guarantee that any existing funds will be transferred into a new scheme, however each employee will have the option to do so and we would like the pension provider to support members in wishing to do so.
Currently monthly pension contributions paid by both BBC employers and employees are c. 2 000 000 GBP per month, and this is expected to rise in line with the additional employees that join LifePlan each year.
The funds under management are expected to be 250 000 000 GBP — 400 000 000 GBP over the 7 year period of the agreement under this procurement. The figures are subject to funds transferred to any new scheme, the number of additional employees that join the scheme and the level of funds contributed by the employer and employees during each month of the agreement.
It is expected that the fees to the Pension Provider will be between 2 000 000 GBP and 5 500 000 GBP over the 7 year period of the agreement under this procurement. These fees will include any payments due to fund managers that will form part of the GPP, and are subject to the total funds under management each month, and the TERs charged under the scheme.
Procurement documentation can be accessed at https://bbc.bravosolution.co.uk