Over the last few years we’ve seen a rapid move from single trust-based schemes to Master Trusts. With this trend set to continue, what exactly is involved in moving to a Master Trust?

On our recent webinar, Mike Ambery, Faye Brady, and Helen Ball from Sackers provided an excellent overview of the journey many Companies and Trustees are taking when selecting an appropriate Master Trust Provider.

You can listen to the full recording here, but in the meantime, here are some key points from our session.

The current Master Trust provider market

Mike kicked off our webinar with a quick overview of the Master Trust market. The market has developed rapidly in the last few years. We’ve seen trust-based schemes fall by 65% since 2010 and the Master Trust market at least doubling in assets under management every 12 months. With consolidation among Master Trust providers and the recent DWP consultation, we may see more single trust-based schemes move towards Master Trust.

Key steps and criteria

It’s typically at least a 6 month process from start to end. Faye shared some useful hints and tips on the best ways to make the process more efficient and more tailored to your key requirements.

The process for selecting a provider and moving to Master Trust can be broken down into 4 key stages:

A really important piece to consider throughout the journey is the legal input required and at which stages in the process it is necessary to take advice.

It’s also important to understand your key drivers when considering a move to Master Trust. An objectives workshop should tease out this detail and will ultimately lead to you narrowing down the market to a best fit provider.

The legal considerations

Helen then shared some thought-provoking insights into how the process differs between Companies and Trustees and identifies the potential pitfall areas that can catch you out during the move to Master Trust.

Transferring DC assets into a Master Trust may not always be a straightforward process and such projects must be planned carefully. Employers and trustees should be aware of the scale of work involved.

Helen highlighted the preparation involved, how to reach an agreement on key issues, and the legal documentation that will be required.

Replay webinar

If you would like to know more about anything covered, please get in touch or speak to your usual Hymans Robertson contact.