DB master trust self-certificates launched
The government is pushing for consolidation of UK pension schemes so they can provide better value for money, following the action taken to consolidate pension schemes in Australia and The Netherlands, which has brought lower costs and wider investment opportunities. To this end, at the end of last month we saw the PLSA launch DB master trust self-certificates.
DB master trusts, like Citrus, have an increasingly important part to play in achieving consolidation and providing the benefits which the Government is seeking. You can read more about the self-certificates and compare key features of each master trust on the PLSA website. The certificates are completed on a voluntary basis, and detail important information including structure, governance, operations, and the process for joining and leaving the master trust.
We hope the self-certificates will raise awareness of DB master trusts as a viable consolidation option, and allow trustees, employers and advisers to see and compare the key features of each, determining the best option for their pension scheme.
The template and guidance were both designed by the Defined Benefit Master Trusts working group, led by the DWP. The concept of self-certification came about as a result of the DWP’s DB White Paper in 2018, which highlighted the need to promote the wider benefits of consolidation of pension schemes.
Self-certificates will make it easier for pension scheme trustees and employers to consider if a master trust is right for them by providing information on how they work and the benefits they bring. Consolidation is key to achieving value for money – driving lower costs and opening doors to wider investment opportunities. I encourage all providers of Defined Benefit master trusts to submit a self-certificate.
Guy Opperman MP, Minister for Pensions and Financial Inclusion, DWP
Read our previous blog post on the consolidation landscape in The Netherlands, which led to positive outcomes for pension schemes and their members, paving the way for the consolidation of UK pension schemes.
For more information on DB master trusts and how Citrus could help your scheme, please contact us.