Introducing our DBDC Solution

If you choose to secure your DB benefits with Legal & General in a pension buyout, we can also offer you our DC proposition: the WorkSave Pension Mastertrust. Our DBDC solution secures the members’ benefits in full and gives members flexibility around how they receive their benefits.

Introducing our DBDC solution video

Transcript DBDC

If life is like a box of chocolates, then looking after your pension schemes can be like managing a freight train.

Many companies have both DB and DC pensions all under the same trust.

This allows pension trustees to offer their scheme members flexibility around how they receive their benefits.

When members reach retirement, they receive joined up communications that tell them about how they can take their DB and DC benefits combined.

Because the DB and DC benefits are provided under the same trust, these pension schemes can allow members to take their DC benefit as their first source of tax free cash, which may be advantageous for some members.

This can help members with their retirement planning because it can lead to them having a larger regular pension income in retirement for a similar level of tax free cash.

Increasingly, trustees and corporate sponsors are working with insurance companies like Legal & General to better protect their members’ DB benefits.

But what happens to the link between those DB and DC benefits in the case of a buyout?

The DB benefits transfer over to the insurer whilst the DC benefits will have to be dealt with in some other way. And those advantages to the members? They can be quite difficult to replicate.

But, if you choose Legal & General as your buyout partner, we can also offer you our market leading DC Proposition: The WorkSave Pension Mastertrust.

This means we secure the members’ benefits in full.

You see, by transferring your DC benefits into our WorkSave Mastertrust at the same time as you move into a buyout with Legal & General, we can effectively recreate the same position as before.

All of the benefits and communications are joined up and being looked after by one party. For members this means that prior to retirement, they have access to our full range of market-leading investment options and they can continue to take their DC benefit as their first source of tax free cash.

Not only that, but any funds left over after taking that tax free cash, give members the opportunity to take advantage of pension freedoms, like buying an annuity, a drawdown product, or receiving a taxed lump sum

If you’re nearing the end of the line on your de-risking journey, you can trust Legal and General to get both your DB and DC benefits on the right track.