DC Pension Schemes & Master Trusts

DC pension schemes are the primary form of occupational pension provision for new employees in the UK. Although DC pension schemes are often regarded as a less complex and less volatile alternative to their defined benefit DB counterparts, they still require expert and thorough management, especially in relation to governance and member communications.

A professional independent trustee can add expert insight and guidance as DC schemes look to navigate the complex governance requirements and the ever-changing regulatory landscape.

A large number of our DB pension scheme clients who also have DC arrangements have chosen Ross Trustees to act as trustee across both sides of their occupational pension offering. We prioritise member choice and strive to ensure communications are clear, accessible and compliant. This provides scheme members with the necessary information to understand the key issues and to make informed decisions that are suitable for their needs and ambitions.

Our scheme portfolio also includes appointments to Authorised DC Master Trusts, where multiple but unconnected DC schemes are linked under one overall master arrangement. This model is an increasingly popular solution and now seen as the DC vehicle of choice for employers.

Independent DC trusteeship is mandated by legislation, which states that over half of the trustees on a Master Trust board are independent, including the chair. We work as chair of trustees  for a number of the market-leading Authorised DC Master Trusts and this experience spans a variety of types.

DC Master Trusts enjoy a separate and a particularly complicated level of regulation and so require a great deal of liaison with the Pensions Regulator. Our experience includes restructuring and consolidating Master Trust arrangements. We apply a high level of insight and experience to the management of such schemes, particularly in relation to the investment and the communications strategy.