MyCSP contract extension and purchase of shareholding

27 Sep 2018

Equiniti Group plc (“Equiniti”), the multinational specialist technology outsourcer providing non-discretionary payment and administration services, is pleased to announce the extension of the existing contract between MyCSP Limited (“MyCSP”) and the Minister for the Cabinet Office for the provision of pension administration and related services until the end of December 2021. The transaction will be accretive to earnings in 2019.

MyCSP is a mutual joint venture partnership between Equiniti’s pension business, Paymaster (1836) Limited (“Paymaster”), the Cabinet Office and MyCSP Trustee Company, an employee benefit trust (“EBT”) that holds 25% of the shares as an employee benefit trust.

MyCSP has been administering the Civil Service Pension Schemes since 2012 and provides services to over 1.5 million active, deferred and retired members, working with around 340 employers.

In addition to the contract extension, Paymaster has separately reached agreement with the Cabinet Office to acquire its stake in MyCSP for £8m, increasing the Paymaster stake from 51% to 75%. The EBT will retain its unchanged 25% stake in MyCSP, with all other elements of the joint venture partnership structure and service contracts continuing unchanged. MyCSP has made a significant investment in technology and services for public sector pensions administration, and has the experience and scale to operate the largest and most complex of schemes. 

Guy Wakeley, Equiniti’s Chief Executive 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. With this contract extension we are committed to further investment in the services and enhancing the employer and member experience.”

Matt Thurstan, Chief Executive Officer of MyCSP 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 our 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.”

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