TPR approves two more master trusts

Andrew Warwick-Thompson, TPR
Andrew Warwick-Thompson, TPR

Xafinity’s National Pensions Trust and voluntary sector provider The Pensions Trust have been added to The Pension Regulator’s list of schemes with master trust assurance.

The additions bring the number of schemes on the list to seven.

Schemes on the list are required to demonstrate they have obtained an independent report showing whether they have met standards set out in the voluntary master trust assurance framework.

TPR will also carry out a number of checks relating to the scheme covering tax relief in member communications and other potential risks, following revelations that some on the list do not facilitate a relief at source structure, meaning those earning less than the income tax personal allowance miss out on 20 per cent tax relief.

The Pensions Regulator executive director Andrew Warwick-Thompson says: “I am pleased that the number of DC master trusts on our list of those with independent master trust assurance continues to grow, and I strongly encourage all master trusts to adopt the framework.

“Master trust assurance allows trustees to demonstrate their scheme has obtained an independent review of their governance standards and controls against a defined set of ‘control objectives’, which have been designed to align with the standards in our DC code and our DC regulatory guidance.

“We believe that large well-run master trusts which have obtained assurance, and group personal pension plans authorised by the FCA, are a good choice for employers seeking to comply with their automatic enrolment duties.”

Xafinity head of DC solutions Ken Anderson says: “Like all MasterTrusts on the Regulator’s list, the National Pension Trust is highly governed. Unlike the majority of master trusts, however, the National Pension Trust does not limit or restrict members’ retirement options – the National Pension Trust helps members to access the full range of pension flexibilities that were introduced in April 2015.”