Cushon Master Trust has consolidated the Workers Pension Trust in an intra-group merger, in what Cushon says marks the first time an acquired master trust has been fully absorbed into another.  

Intra-group mergers of acquired master trusts can be carried out under Continuity Option 1 of the Pensions Schemes Act 2017. Cushon completed the merger after receiving the green light from the Pension Regulator in June 2023.  

Roger Mattingly, who chairs the Cushon Master Trust, said: “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.”  

The board of WPT is being discontinued, with the Cushon Master Trust trustees becoming responsible for WPT members. The board currently consists of three trustees. 

Mattingly added that a review of the default and self-select funds is underway and that the WPT investments will likely switch to the Cushon Sustainable Investment Strategy. Cushon is known for its Net Zero Now pension, which uses carbon offsets. This has reached capacity according to the firm, while its reduced carbon default fund remains open.  

Ben Pollard, founder and chief executive of Cushon, said: “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."  

The fintech has so far bought three master trusts, in a rapid entry and expansion strategy. In 2021, it took on the Salvus Master Trust, which became the Cushon Master Trust. It then purchased WPT in June 2021, and Creative Pension Trust in January 2022. The firm said it will continue to look for acquisition opportunities in the next 12-24 months.     

Before WPT was bought, it was an auto-enrolment master trust in Northern Ireland, with over 5,000 employers and more than 138,000 employees, handling assets worth about £330m. Through the intra-group merger, Cushon is fully consolidating the members. In the next 12 months, members previously with WPT will be migrated onto the Cushon tech platform, giving them access to the firm’s mobile app. Cushon currently has about £2.3bn assets under management. 

Will more intra-group mergers take place within master trusts?