The Carillion Pension Scheme has moved its DC members into the LifeSight master trust, which will take full responsibility of the members’ benefits.

Effective from 21 January 2019, members from the three Carillion schemes - Carillion Pension Plan, the Planned Maintenance (Defined Contribution) Pension Scheme and the Carillion Retirement Plan – will transfer to LifeSight.

The move has increased LifeSight’s membership by 4,100 and its assets under management by £267m, bringing its membership and assets up to 105,000 and £4,200m respectively.

Carillion went into liquidation in January 2018, after reporting a pension deficit of £587m in 2017, and its DB schemes entered the Pension Protection Fund.

Commenting on the announcement, Carillion DC Pension Scheme trustee and ITS client director, Dianne Day, said: “LifeSight has been flexible and understanding throughout this process, in reflecting the particular needs of unfortunate scheme members whose sponsoring employers went into liquidation in January 2018.

“LifeSight offers a top level service and governance for an orphan membership base, which is particularly important given that there would be no continuity of employer sponsor or ongoing contributions in this unusual circumstance.

“One of the most attractive parts of the project is being able to offer a high-quality default strategy for members that provides the full range of decumulation options, rather than the previous design which targeted annuities for all members.”

LifeSight became the first DC master trust to be authorised by The Pensions Regulator, on 22 February 2019.

LifeSight managing director, Fiona Matthews, added: “Carillion’s pension schemes have a unique set of circumstances, and we were delighted to be able to work with ITS to accommodate their particular requirements and for members to benefit from the member-first LifeSight service.

“We expect that authorisation will give further confidence to trustees and employers who have been watching developments, and reassure them that moving to a master trust can improve pension outcomes.”

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