Manchester Airport Group (MAG) has selected Legal and General (L&G) to run a master trust scheme for its employees after a review of its defined contribution arrangement, PP has learned.
Its members - which comprise of those working in Manchester, London Stansted and East Midlands Airports - will be transferred into one of L&G's two master trusts. The two schemes were authorised by The Pensions Regulator (TPR) in April, allowing them to continue to operate in the market to serve pension savers.
MAG said the decision was taken so that employees can "access a modern pension arrangement which offers full pension freedoms, comprehensive member engagement, a range of investment choices, and default and accompanying investment strategies aligned to the pension freedoms."
The contract is to be let for an initial period of five years with the option to extend for two further periods. Each period of five years will be reviewable annually and subject to satisfactory performance of the master trust, MAG said.
The size value of ongoing contribution is expected to be around £10m to £12m, with a potential asset transfer value of around £60m.
LGIM head of DC sales Rita Butler-Jones said: "We are delighted to be working Manchester Airports Group and look forward to working closely with them and to supporting their employees on the critical journey to and throughout retirement."
MAG said it will not provide further details on the deal at this stage.
There are just four master trusts waiting for approval from TPR out of 39 which applied by the end of March deadline, or up to six weeks after if they were given an extension.
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