On the go: Smart Pension has acquired the Ensign Master Trust, making it the eighth such consolidation by the provider, which has promised that an average 25-year-old member would be “thousands of pounds better off” as a result of the move.
Smart Pension, which launched in 2015 and now serves more than 1mn members and 70,000 employers, has previously consolidated Welplan Master Trust, the Corpad Master Trust, and the Corporate Pensions Trust, among others.
Ensign covers 62 employers with more than 5,100 members and £158mn in assets. Smart said that through technology-driven efficiencies, charges on members’ pots would be reduced “significantly”, meaning a 25-year-old with a pension pot of £2,500 should have around £5,200 more in savings by the time they retire.
Smart also pledged to create an advisory panel for the Ensign Retirement Plan, which aims to provide sector-specific feedback and help with decision-making for both employers and members.
Master trusts, like the broader defined contribution universe, are expected to consolidate over time. While the DC market has consolidated by around 40 per cent in a decade, there are now two fewer master trusts operating, even as assets in master trusts increased by almost a half between January 2021 and 2022.
Smart UK chief executive Jamie Fiveash said: “For some time now, consolidation has been the watchword in the pensions industry. People know that is the key to providing value for members, but all too often we see schemes continue to run separately, with duplicate governance and customers stuck on old legacy platforms with the same proposition.
“This deal, however, is an example of real consolidation — bringing Ensign into Smart Pension’s Master Trust structure and delivering all the benefits of its groundbreaking digital efficiency and customer experience. That means better value for Ensign’s members and a better outcome for Ensign’s employers.”
Fiveash added that Smart’s focus on technology allows it to spread out its costs at scale, and the company sees an “opportunity to provide similar benefits to other UK master trust members in the future, either organically or as part of our acquisition strategy”.
Ensign chair Rory Murphy said: “For over three years, the Ensign Master Trust has been delivering a high-quality, low-cost flexible pension, run by and for members and employers rooted in the maritime industry.
“In joining with Smart Pension, we are now able not only to retain those qualities, but also to enhance them by reducing costs even further, offering greater digital efficiency and financial sustainability, all while retaining a strong and accountable governance structure.”
