Workers Pension Trust has now been fully consolidated into the Cushon Master Trust, following its acquisition in June 2021.
This is the first time, since the master trust authorisation regime was introduced, that an intra-group merger of an acquired master trust into another has been completed, under the relevant terms of the Pensions Schemes Act, and following approval by The Pensions Regulator (TPR).
Workplers Pension Trust had been the leading AE master trust in Northern Ireland, supporting more than 5,000 employers and with over 138,000 members. Since its acquisition, WPT Master Trust has operated separately, with independent trustee boards. But following the completion of this merger, WPT assets and members are now part of the larger Cushon Master Trust under the governance of its board of trustees.
In the next 12 months, members previously with WPT will be migrated on to the Cushon tech platform, giving them access to the Cushon mobile app. A review by the Cushon Master Trust trustees of these members’ default and self-select funds is also underway.
This is one of a number of acquisitions Cushon has made in recent years. In 2021, it acquired the Salvus Master Trust which became the Cushon Master Trust. The acquisition of WPT in June 2021 was followed by the acquisition of Creative Pension Trust in January 2022.
It added that it is looking to consolidate further, and would seek to identify future acquisition opportunities in the next 12-24 months.
This completed merger comes at a time when government policy has sought to encourage further consolidation in the workplace pension market — to drive investment into the UK economy through larger DC schemes, and to improve member outcomes.
Cushon founder and CEO Ben Pollard says: “In just over three years we have acquired three master trusts. Acquiring master trusts is only the first step in the consolidation journey. The real win is merging them to create greater scale, which is a good thing for pension savers. This merger is the first of its kind and with it Cushon is creating the blueprint for further industry consolidation.”
Cushon Master Trust chair Roger Mattingly adds: “By consolidating two large workplace pension arrangements, the resources and financial support available to the Cushon Master Trust grows. This gives the Board of Trustees new opportunities to add value, with the aim of driving better outcomes.
“Members will not see immediate changes. However, as they are migrated to the Cushon platform in the coming months, they will gain access to Cushon’s app. Following the current review of the default and self-select funds, we anticipate that in the future, the WPT investments will likely switch to the Cushon Sustainable Investment Strategy.”
Cushon has £2.3 billion of assets under management (AUM).
The post Workers Pension Trust consolidated into Cushon Master Trust appeared first on Corporate Adviser.