DC hot topic: Transferring to a DC master trust – key issues
With the increased focus on governance of DC benefits it can be expensive and time consuming to meet all the regulatory expectations in an employer’s own occupational DC scheme or DC section of a hybrid DB/DC scheme. We have seen a sharp increase in employers looking at moving their DC pension provision from their existing occupational DC schemes into a master trust, both for future contributions and past DC funds. Employers and trustees should not underestimate the scale of the work involved.
This hot topic highlights some key considerations for employers looking to make the change, and trustees who are asked to transfer existing DC funds to a master trust.