Lloyds Banking Group is consulting on moving its UK workplace pension provision to Scottish Widows Master Trust.
The consultation period runs between 17 June and 22 August, and if it goes ahead, members of the Lloyds Your Tomorrow Pension Scheme will see contributions to the Scottish Widows master trust begin in the second quarter of 2026.
Your Tomorrow – which is one of the banking group’s largest defined contribution (DC) pension funds – is managed by Lloyds Banking Group Pension Trustees and currently administered by WTW.
The DC scheme’s total assets are not publicly available, but according to IPE’s Top 1000 Pension Funds 2024, the overall assets under management for the Lloyds Banking Group stood at £38.9bn. The Financial Times has reported the DC fund to be worth £6bn.
Lloyds said that if the proposal goes ahead, affected members would see their pension managed by the trustee of the master trust and administered by Scottish Widows.
The move comes as Lloyds believes that scheme members could benefit from the “significant investment” that the bank is making in Scottish Widows and its master trust in a bid to make it “the best defined contribution pension provider” for its members.
Scottish Widows became part of the Lloyds Banking Group in January 2009, and a part of Lloyds marketing group in March 2000. It has more than £232bn in assets under administration.
The bank added that by transitioning to an in-house master trust, members would benefit from £100m of investment in a “cutting-edge digital-first” platform, offering greater flexibility in managing their savings.
Lloyds said it assessed the capability and capacity of Scottish Widows against a detailed set of requirements and completed due diligence as it would do for any third-party supplier. In addition, it said the group would manage the pension arrangement in the same way it would manage any relationship with a third party.
Many commercial pension providers similarly look to provide their own pension arrangements for employees, including Aviva, Standard Life and Legal & General.
A Lloyds Banking Group spokesperson said: “We are consulting with our UK-based colleagues on a proposal to move our pension provision to the Scottish Widows Master Trust.
“Scottish Widows has developed an outstanding digital platform, and we believe our people will benefit from the investment and innovation that has shaped it. In line with industry trends, we are proposing a shift to our own pensions product, which offers a market-leading digital interface and greater financial flexibility for our people.”
The spokesperson added that the bank will ensure that all members have the opportunity to engage, provide feedback, ask questions, and gain a full understanding of the proposed change.
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