Standard Life has extended its master trust proposition with the launch of a retirement section for employers and trustees of single employer defined contribution (DC) own trust pension schemes.

The pension provider stated that the ‘at-retirement’ market offered limited choice, and it was aiming to open up its master trust as an at-retirement option for employers offering an own trust arrangement.

Specifically, Standard Life said the launch would address concerns around the level of regulation and compliance required when offering in-scheme drawdown at retirement by reducing the regulatory burden on trustees, while making sure members continue to have trustee oversight within the master trust arrangement.

It also anticipated lower costs for members compared to open market drawdown options, as well as easier member access through digital-first onboarding with ongoing communication, engagement and guidance.

Members will be able to access investment pathways, allowing them to select a solution that best suits their retirement needs.

The scheme also offers access to 25 self-select funds from a range of asset managers.

Commenting on the announcement, Standard Life head of master trust, Donna Walsh, described the new proposition as a “win all-round” for employers, trustees and members within own trust schemes.

“Employers have considerable responsibility in running their businesses without having to contend with increasing and complex governance and a tightening compliance regime,” she continued.

“Our research suggests very few own trust schemes offer drawdown arrangements, as the cost and liability make this prohibitive.

“Our new solution helps eliminate this burden, in a cost-effective way, with the reassurance of oversight from independent trustees of our master trust.

“Consequently, we are seeing an increase in demand for this solution amongst employers and trustees and entering this market signals our ongoing commitment and investment in our master trust proposition.”

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