The Government has launched a mutual to administer the pensions of the 1.5 million members of the civil service scheme.
MyCSP’s mutual joint venture model gives employees a 25 per cent ownership stake, representation at board level and a share in the profits. MyCSP will administer the pension scheme for seven years, with the option to extend this for a further three years.
It is hoped the model will cut costs for taxpayers, reaching annual savings of 50 per cent by 2022. The Government will retain a 35 per cent stake so taxpayers will eventually benefit from any proceeds.
Former Honister Capital chief executive Mark Lund has joined as a non-executive director and will chair the MyCSP employee partnership trust charged with protecting the employees’ interests. Lord Hutton of Furness (pictured) will be the first chairman of MyCSP.
The Equiniti Group’s Paymaster business has won the tender to carry out the administrative functions and will receive a 40 per cent stake.
Minister for the Cabinet Office Francis Maude says: “This deal works for taxpayers, employees and pension scheme members. We are transforming a neglected back office operation into a competitive and responsible new business that will contribute to the economy and save taxpayers millions of pounds.
“But MyCSP Ltd is much more than a single new SME. Its development will help generate economic growth by keeping our public service Industry ahead of the competition.”