Danish pension fund ATP has announced the launch of an independent multi-employer trust pension to rival the National Employment Savings Trust (NEST.
NOW Pensions will focus on delivering a greater retirement income for the UK population than current provision.
The scheme will be open for business from early 2012, just before auto-enrolment begins.
ATP head of international relations Morten Nilsson will become chief executive of NOW Pensions.
Nilsson said: "Auto-enrolment is a very important development in pension provision in the UK.
"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.
"We believe by leveraging ATP's unique experience in running a similar scheme and its strong investment capabilities, NOW Pensions is well placed to offer a better deal to UK employees."
ATP had been one of the original bidders for the administration contact for NEST but pulled out of the running in October 2009, saying providing services for personal accounts did not fit with their commercial model.
As part of the launch, ATP has also announced its pensions advisory board comprising well-known industry figures with different areas of expertise.
The board will include:
• Imelda Walsh, former Group human resources 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, chief executive of ATP Group
All of the board will become trustee directors of NOW Pensions from the beginning of 2012.
ATP has more than 4.7 million members in Denmark and 45 years' experience managing and administering the largest pension scheme in Denmark.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation