Exploring how the Government plans to encourage DC pension schemes to consolidate with larger schemes or master trusts, the impact on trustees and scheme sponsors, and the perspective of a trustee of the UK’s biggest master trust.
The Government believe consolidation is the most effective way to ensure that all DC members are receiving the best value from well governed schemes that can achieve economies of scale. They have proposed that from October 2021 all DC schemes with less than £100m in assets need to compare their scheme with 3 larger schemes or master trusts. Schemes which do not demonstrate value for members under the new assessment should take immediate steps to wind up unless they can improve both rapidly and cost effectively.
Andrew Blair, Policy Lead on DC Investment and Governance (DWP)
Mark Cliff, Trustee (L&G Master Trust)
Mark Pemberthy, Principal and Benefits Consulting Leader (Buck)