What is a master trust?

Master trusts provide a multi-employer occupational pension arrangement whereby each employer has its own segment within the master trust. There is one single legal entity with a single governance board (which is independent of the participating employers). This governance body typically has responsibility for investment options, service provision and communicating with the members.

There are a number of different master trust solutions in this fast growing market. Master trusts reduce the employer cost and governance burden of providing pension savings to employees, whilst still retaining the best advantages of a trust. In addition, the arrangement enables the members of the master trust to benefit from economies of scale through consolidated governance and advisers and cost pooling of investments