Xafinity Pension Trust (XPT) Exit Solutions address the governance and cost challenges of closed DC schemes.  

Members’ DC benefits can be transferred to XPT on a bulk basis, removing the costs and compliance hassles from the trustees and sponsoring employer, allowing the scheme to be wound-up.  

Similarly to S32 policies, 100% take-up can be achieved, as member consent is not required. However, unlike S32 policies, XPT is managed by a Professional Trustee, whose sole objective is to look after members’ benefits, offering high levels of support, governance and communications.  

XPT Exit Solutions has a number of advantages over S32 policies, which include:

• support to assist members in selecting an appropriate investment strategy;
• continual review of the asset allocation and investment managers used to provide this strategy;
• comprehensive retirement support to assist members in selecting the right form of benefits for them personally, as well as the most competitive terms available;
• automatic payment of lump sum death benefits tax-free;
• ability to negate the impact of MVAs on with-profits policies, subject to certain conditions;
• less time consuming and cheaper transition phase for the employer and trustees;
• option to receive future contributions.  

The employer can decide whether to retain a link to these former employees, or pass the full responsibility for the members to XPT.