Master trusts: preparing for the Pension Schemes Bill
Master trusts offer a solution for employers who want the benefits of a trust-based scheme without the cost and time of setting up and running their own arrangement. Whilst there are clear advantages to providing DC on a larger scale, there are concerns that some members may be at risk from poor quality master trusts which are not financially sustainable.
The Pension Schemes Bill will introduce a new regulatory regime for master trusts which is intended to address these concerns. Once it comes into force, master trusts will only be able to continue if they have been authorised by TPR. The current timetable envisages the Bill becoming an Act by April 2017, with regulations following later in 2017 and into 2018.
DC hot topic Master trusts: preparing for the Pension Schemes Bill