Medicash, a UK not-for-profit health insurer, has transferred its £20m (€21.5m) defined benefit (DB) scheme to TPT Retirement Solutions’ DB master trust. 

The Medicash scheme has around 174 members.

Sue Weir, CEO of the Liverpool-based health cash plan provider, said the benefits of a DB master trust “can be attractive for schemes with less than £1bn under management”.

“The transfer will improve the security of our members’ benefits by enhancing the scheme’s governance, gain access to a more diversified range of assets […], reduce running costs and ensure our members will continue to be well looked after,” she said.

TPT Retirement Solutions runs a consolidation vehicle for DB and defined contribution (DC) schemes, with the vast majority of its £10bn assets in the DB master trust.

The Medicash transfer comes after TPT took on the £220m DB scheme of Coventry Building Society, the UK’s second largest building society, in June.

At the time Mike Ramsey, CEO of TPT Retirement Solutions, said a number of other schemes were looking to join.

Commenting on the Medicash transfer, he said in the past year a “wide variety” of schemes had transferred to TPT.

“Looking forward many more are expected to join TPT as increasing regulation, complexity and the need to run schemes more effectively, encourage scheme sponsors and trustees to review the best way to deliver on their financial obligations to members,” he added.

In May Hinckley & Rugby Building Society completed the transfer of its closed £30m scheme to TPT’s DB master trust arrangement.

Trustees and sponsors of UK DB pension schemes also have the option of pursuing consolidation via two new entities in the market, Clara Pensions and Pension SuperFund. The latter last month said it had signed up its second client, a £300m scheme, in its second deal since opening for business last year.

Health cash plans are insurance packages that provide cash back towards policyholders’ healthcare bills as well as providing cover for medical treatment.