Denmark's largest pension scheme, ATP, has announced that it will launch a new multi employer trust, called NOW pensions, in the UK on 1 January 2012. 

ATP covers almost the entire Danish population representing 4.7 million members and 160,000 employers. It says its intention with its new DC offering is to deliver "low-cost pensions" and to "make it easier for UK employers to comply with auto-enrolment and provide employees with easy to understand, serviced, quality pensions that deliver long-term stable returns".

In a statement, Lars Rohde, CEO of ATP Group, said: "There is a need for a member-centric solution designed for ease of use with low costs and cutting edge investment strategy, which delivers long term stable returns. Our in-house investment capabilities, combined with our novel and innovative approach, allow us to be agile and efficient."

The scheme will compete with the government's NEST as the collective DC offering when auto-enrolment changes come into place in October 2012.

"Auto-enrolment is a very important development in pension provision in the UK," says Morten Nilsson, head of ATP International Operations and now CEO elect at NOW Pensions says. "It is vital for it to be a success and offer both employers and employees alike a good pension outcome based on cost efficiency, stable long term investment returns and a strong and member centric governance structure."

Safeguarding the interests of members will be the NOW Pensions' advisory board, which will comprise of the following future trustee directors:

- 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
- Nigel Waterson, former Shadow Pensions Minister
- Lars Rohde, CEO of ATP Group

Nilsson says that each member of the advisory board is "passionate about creating a better retirement income proposition in the UK, on a commercial and sustainable basis". He also added that the dynamic background of the board members will help contribute to the scheme's success. "Expertise and experience representing all main aspects of delivering pension - member, employer, actuarial, investment and political – will provide a strong basis for a successful solution for the UK market."

In addition to the ATP Scheme, the ATP Group administers a number of pension and social insurance schemes, including several for the Danish state. On 30 June 2011 the ATP Group assets amounted to approximately £56bn and £ 9.2bn in reserves.

First published 12.09.2011

azeevalkink@wilmington.co.uk