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.
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