Master trust

The People’s Pension scheme is a master trust. A master trust is a multi-employer occupational pension scheme in which each participating employer has its own section.

The People’s Pension is governed by the Trustee Board in accordance with the Trust Rules. The Trustee’s responsibilities include scheme administration, governance and investment services. In contrast, it’s down to each participating employer to make decisions on benefits and contribution levels (which are subject to regulatory minimums) for their employees.

A master trust can be a very useful vehicle for employers to use to comply with their auto-enrolment duties. Master trusts typically offer employers lower annual management charges and increased governance when compared to some alternative arrangements.

In August 2019, The People’s Pension was granted master trust authorisation. This was part of a new authorisation regime, overseen by The Pensions Regulator, that all master trusts needed to meet to continue operating. It means The People’s Pension is recognised and approved by The Pensions Regulator as a master trust that’s properly run and governed in the best interest of its members.

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 Employers