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

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Pensions News

DWP confirms government review of pension transfer process as concerns over transfer delays spark reform debate

In a written parliamentary question raised by Zarah Sultana MP addressed to the Secretary of State for Work and Pensions, she asked what measures the Department were taking to enhance transparency and consumer control in defined contribution pension transfers when these transfers are not executed on a specific date or at a specified value. In response on 16 May 2025, Torsten Bell, Minister for Pensions on behalf of the Department for Work and Pensions (DWP), confirmed that the DWP is working with regulatory bodies, the pensions industry and other stakeholders to identify and explore potential changes to pension transfer processes to enhance efficiency while also maintaining consumer protection. In particular, the DWP explained that it has engaged with other government departments, pensions institutions, consumer organisations as well as the pensions industry to consider if the practical application of the Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021, SI 2021/1237 could be improved.

Government consults on local government pension fixes to tackle discrimination

Law360: The government proposes making all maternity, shared parental and adoption leave automatically pensionable for members in the Local Government Pension Scheme (LGPS), among a raft of other changes it said would boost benefits and end 'years of discrimination' when it published a consultation on 15 May 2025.

LGPS Scheme Advisory Board requests meeting with government on pooling decisions

The LGPS Scheme Advisory Board has sent a letter to the government asking for a meeting to discuss the proposed course of action set out in the recent letters sent by the government to the eight LGPS investment pools (which outlined Ministerial decisions on the pooling proposals submitted to the government as part of the Fit for the Future consultation) and requesting an extension of the deadline to give LGPS funds and pools additional time to ensure that they properly fulfil their fiduciary duties.

Government urged to reform scam rules amid widespread pension transfer delays

Law360: The government must reform its scam protection regulations in the face of spiraling delays in transferring pension savings, PensionBee, a pensions provider, warned in a report published on 16 May 2025. It called on the government to introduce legislation requiring pension transfers to be carried out within ten days.