Equiniti has purchased the Cabinet Office’s 24 per cent stake in MyCSP for £8m and announced an extension to its administration deal with the Civil Services pension schemes until December 2021.
Following the purchase, Equiniti’s stake in MyCSP will increased from 51 per cent to 75 per cent, while MyCSP Trustee Company, an employee benefit trust, will retain the other 25 per cent.
MyCSP also activated a contract extension between itself and the Cabinet Office for the provision of pension administration and related services until the end of December 2021. The deal will be accretive to earnings in 2019.
Equiniti chief executive, Guy Wakeley said: “We are delighted that the Cabinet Office has chosen to exercise the MyCSP contract extension and continue its partnership with Equiniti until December 2021. I am pleased Equiniti is investing further into this ongoing joint venture with the trust, which is in line with our strategy.”
MyCSP is a mutual joint venture partnership between Equiniti’s pension business, Paymaster, the Cabinet Office and MyCSP Trustee Company. It has been administering the Civil Service pension schemes since 2012 and provides services to over 1.5m members, working with around 340 employers.
MyCSP chief executive officer, Matt Thurstan commented: “The extension of the existing Civil Service pension contract is a great achievement for MyCSP and testament to our complete focus on the member and employer experience.
"Since MyCSP was established, we have made significant investment in both our technology and out employee partners and we remain committed to greater investment to enable us to further enhance member and employer experience, both for current and future clients.”
The new deal continues Equiniti’s rising stake in MyCSP after it purchased 11 per cent of shares in October 2014 to increase its stake to 51 per cent.