Pensions Regulator Consults On Master Trust Authorisation Regime

Master Trusts are a popular way for employers to meet their auto-enrolment obligations. They are basically pension schemes providing money purchase benefits to non-associated employers.

The process for signing up is usually simple with standardised documents for new joiners, although they can need a brief legal check and explanation given that they are trust deeds so you should know what you're agreeing to. Master Trusts follow a 'pensions as a service' model, like a group personal pension, but are regulated as an occupational pension scheme rather than a personal pension as they are trust based.

Popularity breeds competition which has led to fragmentation in the market and some concern around certain smaller providers and their financial stability in the event that something goes wrong. The Government legislated in the Pension Schemes Act 2017 to clamp down on the 'wild west' elements of the market, and put some mandatory requirements for those wishing to set up or