TPR authorises final DC master trust

The Pensions Regulator (TPR) has authorised the 37th and final DC master trust – Salvus Master Trust.

There are now a total of 16 million savers in the authorised master trusts, which are now “better protected” due to the authorisation regime, according to the regulator.

The Salvus Master Trust is a workplace scheme open to all employers and has over £200m in assets under management.

As a result of TPR implementing the new law the market has since reduced in size by nearly 60 per cent, from 90 schemes to 37 authorised master trusts.

Half of all employees who have been automatically enrolled into a pension are saving into a master trust.

Commenting on the milestone, TPR executive director of frontline regulation, Nicola Parish, said: “These tough new requirements better protect the 16 million pension pots in master trust schemes, which people will rely on in their retirements.

“More than 50 schemes leaving the market shows that these laws are demanding – and rightly so. It is right that people saving for their retirement should be in a scheme which adequately protects their pension pots and which they can have confidence in.

“The 37 authorised master trust schemes will continue to be closely supervised by us to make sure they continue to operate within the law.

“We will also expect them to set an example for the rest of the pensions industry – to have their data in shape ready for the pensions dashboards, to be at the forefront of considering climate change in their investments and ensuring that savers are getting value from their pensions.”

Salvus Master Trust chairman of the trustees, Roger Mattingly, added: “The master trust authorisation process is an essential way of ensuring schemes have the robust governance and protocols in place needed to secure the best possible outcomes for members.

“Successfully completing the process is reflective of the Salvus Master Trust’s ongoing commitment to the market and we look forward to being part of it as it continues to evolve.”

Despite applications closing for existing master trusts, new master trusts can apply to enter the market at any time. They must provide evidence outlining how a scheme will meet the standards in five key areas.

However, new schemes will be more intensely supervised than existing schemes because they will not have an operational track record.

Aegon Master Trust, Aspire Savings Trust, Atlas Master Trust, Aon, Master Trust, Aviva Master Trust, The Baptist Pension Scheme, BCF Pension Trust, the BlueSky Pension Scheme, The Carey Workplace Pension Trust, The Cheviot Pension, Creative Pension Trust, The Crystal Trust, Combined Nuclear Pension Plan, Ensign Retirement Plan, Fidelity, Legal & General WorkSave Mastertrust, Legal & General WorkSave Mastertrust (RAS), The Lewis Workplace Pension Trust, LifeSight, Mercer Master Trust, National Pension Trust, Now Pensions Trust, The ITB Pension Funds Nest, The Pensions Trust (TPT Retirement Solutions), The People’s Pension, the Railways Pension Scheme's DC, Scottish Widows Master Trust, The SEI Master Trust, Standard Life DC Master Trust, Stanplan A, University of Oxford Staff Pension Scheme, the Universities Superannuation Scheme and Workers Pension Trust are the master trusts that had already gained regulatory approval.

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