Articles - Debunking the myths of Master Trusts

There are a number of misconceptions when it comes to moving your scheme to a DC Master Trust arrangement. Here, we debunk those myths once and for all! Myth #1. Master Trusts are controlled by an external group that restrict your Company’s ability to engage. In reality: Master Trust providers work collaboratively with each employer to build an effective and tailored communication campaign for your staff.

 Michael Ambery, Head of DC Provider Relations from Hymans Robertson

 Typically this includes a mobile phone app that allows members to review their pension savings and investments with just a few taps. Regular engagement between the employer and the provider can yield a very sophisticated and integrated pension and financial wellbeing engagement strategy at value to members and the employer.

 Myth #2. Master Trusts only have a small fund range and one default investment option.
 In reality: Master Trusts typically have over 25 core investment funds which are suitable to meet the needs of most. They also have a number of default options that are aligned to how members may retire (cash; drawdown and annuity). These are governed by the Master Trust trustees and effectively communicated to allow member choice.

 There is also the flexibility to add funds and create a bespoke default to meet your membership needs. Most recently this would be to ensure Responsible Investment is key within a default and adapted to meet employer and member voice.

 Myth #3. A switch to a Master Trust is complex and time consuming.
 In reality: A switch can take as little as 3 months and the heavy lifting for setting up the arrangement within payroll is done mainly by the provider. Communicating to members is also done by the provider and this can be adapted to deliver additional communications if needed. In fact, if you are considering a change to your workforce, pension scheme design (contribution or investment) and also integrating new systems or financial wellness it may be more economical and efficient to consider a Master Trust arrangement.

Back to Index

Similar News to this Story

Industrialise risk modelling with ReMetrica® Ultimate
How do actuaries manage multiple models and data sources that cover several entities? Now ReMetrica Ultimate edition brings new workflows, advanced au
Time to home in on home claims data
In just six months, the way we occupy and use our homes has altered dramatically, and the change in risk this creates will be felt in the market’s cla
The ethnicity pensions gap
With 86% of the UK population from a white ethnic background and pension schemes designed to meet the needs of the majority, are we confident 14% of t

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.