The Pensions and Lifetime Savings Association has today (Thursday) commented on the importance of greater regulation of master trusts.
Tim Gosling, Policy Lead for Defined Contribution at the Pensions and Lifetime Savings Association, commented:
“Master trusts are critical to the future of the Government’s pension policy: they have been able to bring high quality pension products to market at low prices that would simply have been unavailable to many people only a few years ago. Without master trusts providing workplace pensions for millions of people, automatic enrolment would not be possible and those saving with well-run schemes can be confident that their retirement savings are safe. Pension schemes of this sort offer genuinely independent governance backed by the legal duty on trustees to act in the interests of scheme members.
"The Pensions Regulator (TPR) is right to raise concerns about risks posed by less well-run pension schemes. Last month we wrote to TPR outlining our concerns about the degree of consumer protection present if a master trust goes bust. TPR need the powers to regulate this market properly and we welcome their intention to take action ahead of time.”
For more information please read our letter to the Pensions Regulator about the new draft DC Code of practice consultation, including the need to address gaps in the regulatory framework for master trusts.
Policy Lead: DC