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Goddard Perry merges master-trusts to create 10,000 member scheme

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Goddard Perry is to merge its Spinnaker and Salvus master-trusts from 1 January 2016 to create a single £40m scheme.

The consultant says the new scheme, which will retain the Salvus name, will have 10,000 members and over £40m of assets. It aims to make administrative savings through employing a single auditor and trustee board.

Spinnaker was set up in 2009 as part of a deal with the Pension Protection Fund to take on schemes orphaned by failed sponsors. It now has over 100 employers with charges ranging from 0.5 per cent to 0.75 per cent.

Salvus was launched in 2012 and provides auto-enrolment for over 900 employers. Charges are capped at 0.6 per cent plus an 83p per member monthly administration charge, though fees can be lower depending on the profile of members.

There is a £300 one-off set-up fee with a £100 discount available if employers work through an adviser.

Goddard Perry managing director Steve Goddard says: “It is clear that only the fittest and leanest master-trusts will survive. With Nest losing a considerable amount of taxpayers’ money, providers must strive to offer terms that are competitive but will also create profit.

He adds: “Auto-enrolment provides a considerable opportunity for financial advisers and employee benefit consultants, but they need the reassurance of working with a strong master-trust. The merger between the two successful brands is a clear indication of our commitment to the market and to our introducers.”

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