The members and assets of the Royal Mail Defined Contribution Plan (RMDCP) have transferred to L&G in the largest transition to a UK DC master trust to date.

Nearly 100,000 members and £2.45bn of assets under management have transitioned into the L&G Mastertrust.

L&G said the mandate built on the growth of its DC & Workplace Savings business, adding that the Royal Mail scheme trustees selected L&G based on its member experience and administration offering, investment proposition, value for money, and capabilities in delivering large-scale scheme transitions.

The L&G Mastertrust has 6 million members and £54.3bn in assets under administration, having secured over 140 workplace pension schemes since 2020.

Its Lifetime Advantage Funds (LAF) will be the Royal Mail scheme’s default investment strategy.

The strategy includes a target allocation of 15 per cent to private market investments during the accumulation phase.

It hit £30bn in assets under management earlier this year and is designed to support long-term member outcomes through a mix of public and private market investments.

"We're delighted to have been selected by the plan trustees and Royal Mail as the master trust provider for the RMDCP membership and successfully completing this complex transition,” commented L&G head of UK distribution, Jayesh Patel.

“The appointment reflects the trust our clients place in our ability to deliver transitions of this scale, while providing strong value for money and helping members achieve better long-term retirement outcomes.

“We look forward to working closely with Royal Mail to help members engage with their pension savings and make informed decisions through every stage of their journey to and through retirement."

RMDCP trustee chair, on behalf of Law Debenture, Elizabeth Hartree, added: “We are delighted to have successfully transitioned to the L&G Mastertrust, ensuring our members continue to benefit from strong governance, high-quality support and a focus on long-term retirement outcomes.

“For both the trustees and Royal Mail, we wanted a new home which was well suited to our membership and could readily take on a large population and significant assets. It was clear that L&G was that home.

“Throughout the process, our priority has been to provide a seamless experience for members while enhancing the pension proposition available to them. We look forward to working with L&G to help our members achieve better long-term financial outcomes.”

This article originally appeared in our sister publication Pensions Age.

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