New rules to improve standards of master trust pensions forces 30 schemes out of market

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New rules which have come into force today aimed at improving standards with master trust pensions have led to 30 schemes leaving the market.

From today, master trusts, schemes which bring pensions held by multiple employers under the same board of trustees, will need authorisation from The Pensions Regulator (TPR) to ensure they meet new standards designed to protect the savings of 10m people.

Those who do not meet TPR's standards on financial reserves, robust systems and adequate plans will be asked to wind up operations and transfer members to an authorised scheme.

Existing master trusts now have six months to file an application to TPR to continue operations. TPR said 58 schemes still need to apply for authorisation.

"The success of automatic enrolment has led to rapid growth in master trusts," said Nicola Parish, exective director for Frontline Regulation at TPR. "Authorisation and supervision is vital to ensure 10m savers can have confidence that their retirement savings are safe.

"It is now up to trustees to review the code of practice and guidance, and submit applications through our portal."

Master trusts are typically used by employers due to their lower operating costs and greater simplicity and expediency compared to a single employer scheme.