Kent-based landlord exits Social Housing Pension Scheme

Chris Ellmore, interim executive director of finance at Moat, said: “We consulted extensively with staff, working closely with Mike Richardson and his team from our pension advisors LCP, Katie Maguire and her team from our legal advisers Devonshires, and TPT during the transfer process. 

“The scheme remains within TPT and we look forward to working with them in the future to set our defined benefit pension strategy going forward.”

Mike Richardson, partner at LCP, said: “We are delighted to have helped Moat secure their exit from SHPS and into their own arrangement, not least given the challenging market backdrop. We now look forward to working with Moat on the next stage of their journey towards reducing and ultimately extinguishing their pensions risk.

"Having advised on the very first exit from SHPS, and also the most recent, it’s clear that the process is now much more streamlined and accessible for associations who wish to take greater control of their pension liabilities.”

TPT confirmed to Inside Housing that the transfer had taken place and that the landlord’s new scheme is called the Moat Homes Pension Scheme. 

A spokesperson added: “The decision means Moat Housing Group continues its successful relationship with TPT Retirement Solutions, providing its members with continued access to TPT’s strong governance, administration and investments. 

“The decision to transfer was communicated to all the members of the scheme, and the SHPS committee worked constructively alongside the group to ensure that the trustee’s regulatory duties were satisfied.

“SHPS continues to be a successfully managed multi-employer scheme with more than 400 employers and around 120,000 members.”

It appears to be the latest association to leave the scheme since Wales & West Housing quit in April last year. 

At the time, the Welsh landlord said the main reason for the transfer was so that it could have more control over the costs and risks associated with its defined benefit pension promises and improve the security of members’ benefits. 

The Guinness Partnership left in July 2021.

Guinness’s exit, which the landlord said would allow it to have greater influence over investments, followed the departure of a number of other large housing associations from SHPS in recent years, including Bromford, Clarion, Radian (now Abri) and Sanctuary.

Inside Housing also revealed in February last year that the SHPS deficit had dropped below £1bn for the first time in over a decade.

Figures shared with the 400-plus housing organisations participating in the scheme revealed the deficit had fallen from £1.6bn in September 2020 to £930m on 30 September 2021.