LONDON, 23 July 2020 – Vodafone has completed the transfer of its 45,000 UK Defined Contribution (DC) pension scheme members into the LifeSight master trust. With £1.4bn of assets it is believed to be the largest ever transfer of an unbundled DC scheme to a master trust.
Formerly a single employer trust-based scheme, the Trustees of the Vodafone UK DC Pension Plan conducted a strategic review of their DC investment approach. This review concluded that the default investment strategy should be targeted at decumulation drawdown - providing greater flexibility for members at retirement - and that the members would be best served by a specialist master trust that could deliver a range of targeted investment strategies and provide value for money for the member.
In addition, Vodafone was keen to provide more Environmental, Social and Governance (ESG) fund options for members. LifeSight’s combination of ‘freestyle’ ESG fund options and its incorporation of ESG into its primary default funds was a significant factor in its selection.
LifeSight’s introduction saw strong engagement from members, with over 70% of Vodafone employees logging into their new LifeSight account following the launch.
Kate Grant, Head of Pensions and benefits at Vodafone, said:
“The transfer of our DC pension plan to LifeSight was designed to give members greater control of their savings. LifeSight has particularly strong financial wellbeing and savings consolidation tools, which we feel are increasingly important in the defined contribution market as members have more options and are faced with more decisions on how to manage their retirement savings.”
Fiona Matthews, Managing Director of LifeSight said:
“Vodafone was really focused on ESG, high quality governance, online tools to help engage members and financial wellbeing, so we were delighted that LifeSight’s commitment to these areas matched Vodafone’s expectations.”
“Vodafone was really focused on ESG, high quality governance, online tools to help engage members and financial wellbeing, so we were delighted that LifeSight’s commitment to these areas matched Vodafone’s expectations.”
Fiona Matthews
Managing Director of LifeSight
“We know from our own research that within the next two years over a third of FTSE 350 companies are likely to have adopted a master trust for their defined contribution pension provision, so we are expecting a lot more movement in this area in the near future.”
Jane Platt, Chair of the LifeSight Trustee Board said:
“The engagement levels we’ve seen so far from members has been very encouraging and we will continue to work closely with Vodafone, and its employees, to make sure that their LifeSight experience is as positive and engaging as it can be.”
The addition of Vodafone brings LifeSight’s membership to 200,000 with £8bn of assets under management.
LifeSight is Willis Towers Watson’s master trust, a defined contribution multi-employer pension trust for employers who would benefit from high-quality, low-risk, market-competitive pension provision without the governance burden.
Running a defined contribution pension scheme is becoming complex and costly for a lot of employers. Governance is growing ever more onerous and schemes now have the new pension flexibilities to contend with. Companies have struggled to find a high-quality alternative that has their employees’ needs at heart. LifeSight offers the best attributes of a trust in an outsourced arrangement. Our unique solution looks after the day-to-day running of the scheme, whilst an independent trustee board looks after the interests of your members.
LifeSight gives you access to our leading-edge digitalised platform, including the award-winning ageOmeter tool, and administration services. Combined with our proven expertise in investments and communications, LifeSight is the complete package.
Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and markets. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas – the dynamic formula that drives business performance. Together, we unlock potential.
