House of Commons Library briefing paper: Master Trust regulation
Released 11 September 2018
The House of Commons Library has published a briefing paper examining regulation of Master Trust pension schemes which are used by many employers for auto-enrolment.
Master Trusts are trust-based occupational pension schemes which seek to generate economies of scale by serving multiple employers, who may be entirely unrelated, unlike traditional trust-based schemes set up a by a single employer. Employers can use Master Trusts to provide pensions for their workers, rather than setting up their own or using a Group Personal Pension (regulated by the Financial Conduct Authority). Under the regulatory framework put in place by the Pension Schemes Act 2017, the Pensions Regulator (TPR) will be responsible for authorising and supervising master trusts against criteria relating to systems and processes, financial sustainability and that people running the schemes are fit and proper. Authorisation is expected to start from October 2018. However, to protect members of existing schemes, some provisions took effect from the time the legislation was introduced to Parliament.
For more information and to view the briefing paper, see Master Trust regulation.