With a new year comes a whole host of new challenges for the pensions industry, and 2018 looks set to be the start of an important process of tidying up and building back a reputation of quality and trust for the sector.
Following the introduction of the Pension Schemes Act 2017, we’ve begun to see greater responsibility for Master Trust providers, and greater focus placed on standards. Yet these developments are just the beginning, as conversation turns to the new powers of The Pensions Regulator and the introduction of the authorisation and supervision of schemes following the pending development of regulations.
But what does this mean for the industry?
From October 2018 to March 2019, the pensions regulator will begin inviting people to authorise. During this time, an abundance of evidence must be submitted, proving that each master trust is sustainable and performing to high standards. Schemes will need to prove that members are happy and wanting to save, that they are trusting of their provider and that their money is safe and working to provide them with good retirement income.
So, is your scheme ready for the future?
These new standards require schemes to be able to prove everything that they are doing. For example, how the scheme runs, who makes decisions, how financially sustainable the scheme is.
For those that feel unable to cope with this new regime, 2018 will be a time for winding up their Master Trust. There will be a lot of work required in order to tidy up and get these schemes into a position where the members are not affected. Members will need to be moved across to an environment where their money is safe and to a Master Trust that is here for the long term.
This process will prove to be a real deep clean for the industry as we take a look at what people are really doing with master trusts. 2018 will be an opportunity for removing some Master Trusts from the market that perhaps are not as well governed as others, and moving the industry forward, ensuring that we can provide a gold standard across the sector.
In the video, Director of Operations, Jessica Rigby, discusses Master Trust Authorisation and the new regime in greater detail.
The future looks set to be bright, as we continue to drive a revolution towards better pension savings and an environment where people feel safe in saving for their retirement.
To learn more, or to speak with a member of our team regarding how we can assist you, get in touch today. Visit our contact page or call us on 01322 308 249.