The Department for Work and Pensions (DWP) has revealed its checklist of “priorities and ambitions” for the upcoming defined benefit (DB) master trust accreditation regime.

In a webinar hosted by Citrus Pensions, the DWP outlined that listing costs should be calculated by an agreed formula on a per member basis.

It also called for a transparency on how trustees are appointed and replaced, as well as for data on historic investment performance to be provided.

As part of the accreditation process, the DWP believed that schemes should clarify the scale of funds under its management.

During the webinar, Citrus highlighted the ways in which it can help schemes through consolidation into its master trust, including reducing running costs, improving investment strategy and more stable deficit contributions.

Both the DWP and Citrus detailed that they believed DB consolidation could benefit members, especially in reducing costs and improving governance, and that the accreditation process could help make master trusts and easier and safer option for members.

Commenting on the accreditation recommendations, Citrus trustee secretary, Lindsay Davies said: “The checklist proposed today will go a long way in making the full commercial consolidation landscape more accessible to schemes and trustees and it’s encouraging to see the DWP’s enthusiasm for DB master trusts.

“The recommendations outlined will not only provide much needed transparency on costs and investment performance but will also allow trustees to conduct more accurate comparison exercises between other master trusts and their own standalone scheme.

“By standardising the process, the benefits will be clearer to see and compare which will be a great help. This extra support for trustees and employers will enable them to make a better informed decision in which they can feel confident.

“We are looking forward to supporting the creation of, and ultimately subscribing to, this accreditation process.”

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