RSM welcomes promise of legislation to raise standards among Master Trust pension schemes

Commenting on reports that the government will legislate ‘as soon as practically possible’ to improve standards among master trust pension schemes, Ian Bell, RSM’s Head of Pensions said:

‘Competition among pension providers can bring real benefits to employers seeking to meet their auto enrolment obligations, but the Pensions Regulator is absolutely right to sound the alarm over the dangers of disreputable master trusts.

‘The apparent confirmation by Economic Secretary to the Treasury Harriet Baldwin that the government will look to legislate in order to improve the governance and monitoring of master trusts is welcome, but long overdue.

‘If workers are to be encouraged to save enough for their retirement, they need to have the assurance that their pension provider is competent and reputable. The last thing anyone needs at this stage in the development of the auto-enrolment market is for a big scandal which would undermine confidence in the system and the real progress which has been achieved to date.’