Standard Life has launched a defined-contribution master trust.
It is targeting firms that want to set up a pension scheme under trust but are concerned about the responsibilities with appointing trustees. The scheme has been added to the Standard Life trust-based pension bundled DC product launched in April last year.
Standard will provide the admin, investment platform and member communication for the master trust. Independent trustee firm Pitmans Trustees has been appointed as trustee.
Standard head of corporate strategy and propositions Jamie Jenkins says: “We have seen an increasing demand for a master trust solution. Many employers are still keen on the benefits associated with having trustees but want to avoid the responsibility, cost and complexity of appointing them.”
Pitmans Trustees managing director Richard Butcher says: “With the arrival of Nest, the future of pension provision in the UK is defined-contribution. Pension reform will cause significant expansion in the market and the master trust format will make this journey easier for employers and members.”