A total of 38 authorisation applications have been submitted by master trusts, The Pensions Regulator (TPR) reveals today.
Of the 10 schemes granted an extension, eight have filed an application, one scheme no longer meets the definition of a master trust, and another has decided not to apply for authorisation.
Authorisation puts safeguards in place to better protect the 14 million savers in these schemes. Six master trusts have already been granted authorisation.
To ensure that standards continue to be met, authorised schemes will be monitored by TPR as part of supervision.
Kim Brown, Head of Master Trust Authorisation and Supervision at TPR, said: “We now have the final number of applications for existing master trusts and we will be continuing to assess these applications over the coming months.
“Once authorised, master trusts will immediately be supervised by us. The supervision of authorised master trusts is vital to ensure the new standards imposed in this market are not only demonstrated to us as part of the application process but also continue to be met in the future.
“Supervision aligns with our new approach to regulating trust-based pension schemes and is an example of how we are working more proactively to tighten our regulatory grip to protect savers.”
A blog published by TPR today outlines our expectations of authorised master trusts. Schemes will be expected to engage with TPR proactively, provide updates about material developments, risks and issues, as well as submit documents to TPR periodically.
Notes for editors
- Today the list of authorised master trusts on our website was updated to include USS.
- A master trust is a trust-based occupational pension scheme which provides money purchase benefits and is used by two or more unconnected employers.
- Master trust authorisation was brought in to implement standards in this growing market and better protect the nearly 14 million people saving into these schemes. It puts standards in place in five areas: fit and proper persons; financial sustainability; scheme funder; systems and processes continuity strategy.
- A list of authorised master trust schemes is available on the TPR website.
- TPR is the regulator of work-based pension schemes in the UK. Our statutory objectives are: to protect members’ benefits; to reduce the risk of calls on the Pension Protection Fund (PPF); to promote, and to improve understanding of, the good administration of work-based pension schemes; to maximise employer compliance with automatic enrolment duties; and to minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of TPR’s functions under Part 3 of the Pensions Act 2004 only).