Aon Hewitt is launching a master trust proposition targeting occupational to target the 10 per cent of schemes it expects to convert to such an arrangement over the next five years.
The master trust is designed for schemes with upwards of £20m in assets that want a more streamlined approach and a drawdown solution. Called the Aon MasterTrust, the firm says it completes its line up of services for the UK’s DC market.
The trust has a three-person trustee board chaired by Roger Mattingly of Pan Trustees, alongside, Nicki Mortimer of Capital Cranfield and Kim Nash of PTL.
The service offers a fully automated auto-enrolment solution and built in drawdown option and retirement support propositions.
Aon Hewitt partner and head of DC Consulting Sophia Singleton says: “Running a pension scheme is not getting any easier – in fact, it’s getting increasingly onerous, complex and costly. With the launch of The Aon MasterTrust we have aimed to deliver a solution that offers employers the best of both worlds – a trust-based approach which is outsourced to experts. We are also fulfilling an increasing demand; responses to our upcoming DC survey showed that almost 10% of schemes expect to convert to a master trust over the next five years.
“By launching Aon MasterTrust we are also completing Aon’s range of DC services – advisory, investment only, bundled services, contract-based and now a master trust. The new pension freedoms have also increased demand for decumulation solutions so now is the perfect time to launch our product which includes in-built drawdown.”