Master trusts

Master trusts

What are master trusts?

Master trusts are occupational pension schemes (other than a public service pension scheme) that are used, or intended to be used, by unconnected employers to provide pension benefits to their respective members.

Master trusts are not new—they originated in the 1950s when they were commonly related to a specific industry (eg the voluntary, printing and construction sectors) or specific geographic area. Several long-standing examples are available in the market. However, there has been a refocusing on this type of arrangement as a vehicle for auto-enrolment. For further information on auto-enrolment, see Practice Note: Auto-enrolment—an introduction.

Several definitions of master trusts were developed over time. The Pensions Regulator was the first to attempt to define master trusts. It did so in November 2013 when it published its first Code of Practice on defined contribution (DC) schemes. However, that definition was later dropped in favour of the term ‘relevant multi-employer scheme’ which was used in the Occupational Pension Schemes (Scheme Administration) Regulations 1996 (the Scheme Administration Regulations), SI 1996/1715 and is meant to include master trusts.

It was not

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