Standard Life launches mastertrust to help employers with the 2012 pension reforms

Standard Life has extended its defined contribution (DC) trust-based pension scheme with a mastertrust arrangement, which is aimed at helping employers with the 2012 pension reforms.

It is also aimed at employers that are keen to set their pension scheme up under trust but are concerned about the responsibilities associated with appointing their own trustees.

The mastertrust is a multi-employer arrangement and employers will be able to select customised investments solutions, depending on the investment funds they wish to offer members. A packaged investment solution will be available in 2012.

Standard Life will provide the administration, investment platform and member communications for the mastertrust. Pitmans Trustees has been appointed to provide the trustee duties.

Jamie Jenkins, head of corporate strategy and propositions at Standard Life, said: “We have seen an increasing demand for a mastertrust arrangement.

“Many employers are still keen on the benefits associated with having trustees in place, but want to avoid the responsibility, cost and complexity of appointing them.

“This new DC mastertrust not only gives employers the reassurance that scheme governance requirements will be met, it helps relieve employers of some of the work involved in running a trust-based scheme.

Richard Butcher, managing director of Pitmans Trustees, added: “With the arrival of the national employment savings trust (Nest), the future of pension provision in the UK is defined contribution.

“The pension reforms will cause significant expansion in the market with more than one million employers coming to pension provision for the first time.

“The mastertrust concept will make this journey easier for employers and members. It will help to deliver good member outcomes.”

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