DB Master Trust Self-Certification regime launched | Pensions and Lifetime Savings Association

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DB Master Trust Self-Certification regime launched

27 October 2021

Defined Benefit (DB) Master Trusts are now able to complete self-certificates after the new regime went live today.

DB Master Trust Self-Certificates are a standard template allowing DB Master Trusts to provide information on their structure and how they operate. They are intended to help scheme trustees and employers who may be considering DB Master Trusts among their consolidation options to understand the key features.

As one of several consolidation options, DB Master Trusts can help to reduce costs for some schemes by providing economies of scale through pooling governance, legal, actuarial, administration and investment functions.

While the self-certificates provide useful information about the DB Master Trust, they are not an assessment of the quality of the scheme. Self-certificates are intended to be used as a starting point for trustees; they do not include all the information required for scheme trustees to complete their full due diligence.

The template was designed by an industry working group – led by the Department for Work and Pensions (DWP) – to raise awareness and, where appropriate, encourage take-up of DB Master Trusts. Also on the working group were Abrdn, Deloitte, Hymans Robertson, Mercer, the Pensions and Lifetime Savings Association (PLSA), the Pensions Management Institute, Punter Southall, TPT and Travers Smith.

The concept of self-certification for DB Master Trusts stems from DWP’s DB White Paper in 2018, which highlighted the need to draw attention to the wider benefits of consolidation, including DB Master Trusts.

DB Master Trust Self-Certificates are being hosted by the Pensions and Lifetime Savings Association (PLSA). DB Master Trusts seeking self-certification can find the guidance for completing the process on the PLSA’s website from today and can contact [email protected] to request the self-certification template.

Guy Opperman MP, Minister for Pensions and Financial Inclusion, DWP said: “Self-certificates will make it easier for pension scheme trustees and employers to consider if a Master Trust is right for them by providing information on how they work and the benefits they bring.

“Consolidation is key to achieving value for money – driving lower costs and opening doors to wider investment opportunities. I encourage all providers of defined benefit Master Trusts to submit a self-certificate.”

Joe Dabrowski, Deputy Director, Policy, at the PLSA said: “We are pleased to be working with DWP and the wider industry to bring DB Master Trust Self-Certificates to the sector on the PLSA website.

“Schemes of all sizes can be run well and offer value for money, but for those schemes that are interested in consolidation we hope this new self-certification process will facilitate informed discussion.”

Mark Smith, Senior PR Manager

020 7601 1726 | [email protected]

    Steven Kennedy, Senior PR Manager
    020 7601 1737 | 07713 073024 | [email protected]