Smart Pension is taking the employers and members of Lighthouse Group’s Corporate Pensions Trust following the decision of its trustees not to apply for master trust authorisation.
CPT’s decision not to apply for authorisation means the £12.5m scheme, which has more than 500 employers 6,538 active members, will close and be wound up. All members will move to the AutoEnrolment.co.uk Master Trust operated by Smart Pension.
A partnership between Lighthouse and Smart Pension will see the Lighthouse Group use the Smart master trust as its preferred master trust scheme for SMEs, in place of the Lighthouse Pensions Trust that currently forms part of the CPT.
The transfer of assets is subject to finalisation of the contract and Smart Pension obtaining master trust authorisation from TPR for its AEMT and is planned to take place over the next six months.
Smart CEO and co-founderAndrew Evans says: “We are delighted to enter into this partnership following an in-depth review by the Lighthouse Group, on behalf of the CPT Trustees. We are impressed with Lighthouse Group’s approach to excellence in client service and care, which will continue going forward. This is great news all round, particularly for the employers and members of the CPT who will have access to our world-class customer experience and market-leading technology.”
Lighthouse Group CEO Malcolm Streatfield says: “The Lighthouse Group plc board is pleased to have secured, in principle, a deal to transfer participating employers and members and the scheme assets accumulated within the Corporate Pensions Trust to the Master Trust run by Smart Pension Limited. The transfers, once the AEMT has been approved by the Pensions Regulator, will provide a well-backed and market-leading home for those employers and members who have previously chosen to use the Corporate Pensions Trust to meet their auto-enrolment obligations. This enables the Group to concentrate on its primary business of providing appropriate financial advice, particularly through its affinity connections, and giving a recurring revenue to the Group for years to come.
“We will continue to work very closely with the team at Smart as we develop our wider corporate benefits business, focusing on our advice offering particularly within our affinity relationships.”