DC hot topic: Exiting the DC master trust market
The arrival of the master trust authorisation regime has focused trustees’ and employers’ minds on the future of any DC non-associated multi-employer schemes that they run.
Where these schemes meet the definition of a master trust in the Pension Schemes Act 2017 – and the definition is drawn widely – trustees and employers are faced with a stark decision on whether to:
- make an application to TPR for the scheme to become authorised under the new regime (see our Hot Topic) or
- take steps to exit the master trust market and make arrangements for securing the benefits already built up in the master trust.
This is because, from 1 October 2018, existing master trust schemes will not be able to operate in the
market without authorisation from TPR.