If the experience of our UK neighbours is anything to go by, we should expect Master Trusts to emerge as the favoured means for defined contribution pension savings.  An easy and efficient enrolment process will make Master Trusts a viable solution for the forthcoming auto-enrolment.

The Pensions Authority has published a consultation paper on the regulation of DC master trusts. The closing date for submissions to the consultation process is 5 October 2018.

The Authority believes that the number of DC master trusts and their membership is likely to increase due to additional obligations on trustees resulting from the transposition of the IORP II Directive and from the need for consolidation in DC schemes. The Authority is now considering what additional obligations should be placed on such schemes to reflect the particular risks that apply in comparison to traditional single-employer schemes.

This consultation document sets out the Authority’s view of obligations appropriate for master trusts, over and above those that will apply to traditional single-employer schemes under IORP II. The Authority is now seeking views on these proposed obligations which will inform our approach to the regulation of master trusts and any subsequent advice to the Department of Employment Affairs and Social Protection in relation to legislative changes required. The consultation document is available under ‘Related File(s)’ below.

Views are being sought from all stakeholders on the issues set out in the consultation paper and the direction of regulation for master trusts.