New pensions trust to reduce cost of deferred money purchase pensions

Spinnaker Master Trust is launching a UK pension trust to decrease the cost and complexities of deferred money purchase pensions.

The product, for deferred money purchase members only, has  an annual management charges of just 0.25% for members. It also  eliminates annual charges or takes on the fees for employers with occupational pension schemes,.

The Spinnaker Master Trust offers a ‘safe harbour’ for deferred members of occupational DC schemes and money purchase AVCs under DB schemes. It will take bulk transfers of deferred members with money purchase benefits.

Steve Goddard, managing director of pension administrators Michael Kirk & Partners and Spinnaker Group, said: “When speaking to experienced professional advisors we often asked ourselves why this had not been done before. We concluded that until now our industry had not focused sufficiently on deferred members with money purchase benefits.”

The purpose of the product is to find a better deal for ex-workers who had forgotten about their pension investments, while ensuring that their former employer is not left with large costs to pay.