Master trust authorisation is overseen by The Pensions Regulator. It will help ensure that master trust pension schemes (like The People’s Pension) continue to run in the best interests of their members. To become authorised, master trusts needed to show that their scheme met the 5 criteria laid out in legislation:
- demonstrating the people running their scheme were fit and proper
- the master trust was financially sustainable
- the funder of the scheme could support it
- the master trust had adequate systems and processes in place
- a continuity strategy had been prepared.
We lobbied and supported the government’s decision to introduce an authorisation process for all master trusts operating in the UK pensions market. And in August 2019, The People’s Pension was granted master trust authorisation from The Pensions Regulator.
We firmly believe this is an effective way to help ensure that all master trusts are properly run and well governed.
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.