Sackers comments: What do employers need to consider regarding master trust authorisation?
Helen Ball discusses master trust authorisation for Employee Benefits.
- Employers who use a master trust to provide pensions for their employees could be affected by an upcoming change in the law.
- From October master trusts will need to apply for authorisation from The Pensions Regulator or wind up and transfer members elsewhere.
- Some of the new requirements have been subject to a recent consultation but pending the publication of a code of practice in the spring, there is still a degree of uncertainty regarding their impact.
- It could be a little while before the master trust will know if it has obtained authorisation because The Pensions Regulator has six months to respond.
- Existing master trusts are under a duty to report certain ‘triggering events’ to The Pensions Regulator, the employers and members. These are key events that could impact on the future sustainability of the master trust.
Read the full article in Employee Benefits