Master trust authorisation is overseen by The Pensions Regulator (TPR). It will help ensure that master trust pension schemes, (like The People’s Pension) continue to run in the best interest of their members. It’s a positive change that we welcome.
The authorisation process means that we as a master trust will apply to the regulator for authorisation within a 6-month window that began 1 October 2018. We need to meet TPR’s criteria to continue operating as a master trust.
The Pensions Regulator’s criteria that master trusts can’t operate without:
- All schemes must be run by individuals assessed as fit and proper for their role.
- Schemes must be financially sustainable.
- Any scheme funder must meet specific requirements.
- Systems and processes must be sufficient to ensure the scheme is run effectively.
- Schemes will need an adequate continuity strategy.