With 9.5 million people in the UK now enrolled into workplace pension schemes the Department of Work and Pensions (DWP) is keen that members’ interests are protected.  New legislation and an authorisation regime have therefore been introduced which will be managed and monitored by the Pensions Regulator.

• Restructure

Based on legal advice, it was decided to restructure the Enhance and Workers Pension Trust schemes.  As a result, two transfers took place:

1. Members of Workers Pension Trust with an entitlement to short service benefits, who could not be located despite numerous attempts, were transferred to Enhance on 30 July 2018; and
2. The benefits of active and preserved members in Enhance were transferred to Workers Pension Trust on 3 September 2018.

There has been no change to the existing rights and arrangements for members, member contributions or administration charges as a result of these transfers.

Following this restructure, the combined membership of Workers Pension Trust is 86,600 which means that it is the eighth largest Master Trust in the UK.  Combined funds under management equate to £128 million.

• Short Service Leavers

As an employer you may have had employees who have left your employment and were former members of Workers Pension Trust.

A considerable number of members who left Workers Pension Trust were given the option of a transfer of benefits or a refund of their member contributions.  Workers Pension Trust Limited has made every effort to contact these members.  Any members who have not claimed a transfer of benefits or a refund of contributions were transferred to Enhance as part of the restructure.  These members remain entitled to a refund of their contributions from Enhance.

• Wind up of Enhance

A decision was made to wind up the Enhance scheme which will be completed over the coming months.

Efforts will continue to be made by Enhance Trustee Limited to effect a refund of contributions or a transfer of benefits in respect of any short service leavers during the course of the wind-up of the Enhance scheme.  Following this exercise Enhance Trustee Limited, acting in the members’ interests, will process any remaining entitlements in accordance with the protections for members under the requirements of applicable pension law and the provisions of the deeds which govern Enhance.

• The Pensions Regulator

The Pensions Regulator has been informed of the wind up of Enhance and an implementation strategy for effecting the wind up will be submitted to the Pensions Regulator by 23 October 2018.  This implementation strategy will be available to employers once it has been approved by the Regulator.

This is for your information only and no action is required.  Should you have any questions, please contact the pensions team by email at info@workerspensiontrust.co.uk