DC master trusts are becoming an increasingly popular vehicle for DC pension provision following the introduction of the authorisation regime and the ever-expanding requirements for DC governance. But what are the trips and traps that can arise for pension scheme trustees who are considering or implementing a transfer to a master trust, and what do trustees need to consider when carrying out such a transfer?
- How do the investment, commercial and governance look like and operate?
- How does working for a Master Trust differ from a DC scheme?
- Managing a scalable service with the bespoke needs of sponsors.
Veronica Humble, Head of DC Investment Strategy, Legal & General Investment Management
Savers do not think about their pensions in a vacuum and the seismic shock that COVID-19 has delivered to economies and societies has undoubtedly left its mark. Our latest research harnesses member views on environmental, social, and governance (ESG) issues today, compared to 18 months ago, we explore the extent to which COVID-19 has affected current and future financial well-being. Which generations and gender have been hardest hit and have events over the past year pushed ESG further up members agenda?
Consolidation, seeking to improve investment design, and benefit from economies of scale is providing a large tailwind for schemes to consider the move to a Master Trust (multi-employer scheme). In their 2020 report, the DCIF noted that many Master Trusts are utilising the TDF structure or are considering moving from a traditional lifestyle approach to a target-date fund.
The role of the presentation is to illustrate why we think well-managed TDFs are well-positioned to meet the demands of the UK retirement landscape today and going forward.