Dogs that bark… bite

By fining two trustee companies running four mastertrusts (read our article), The Pensions Regulator has made a clear statement that it will hold defined contribution schemes to high standards – even more so where professional trustees are involved.

The fines have also highlighted mastertrust governance once again. It seems the regulator is intent on creating a clean slate for a market that is efficient, professional and sustainable as the Pensions Policy Institute estimates that more than 7m people will be in a mastertrust by 2030.

As the Pension Schemes Bill is debated, mastertrusts move further into the spotlight. Most recently, the idea of a funder of last resort acknowledges the need for a framework that enables orderly wind-ups, passed by the Lords “to manage any cases where the Master Trust has insufficient resources”.

If there was indeed a messy wind-up, it is not just the market that would suffer; trust in pensions is already low, and the danger that auto-enrolled members could opt out of a vehicle they feel is unsafe.

But as Blue Monday approaches, let’s look on the bright side and not forget that auto-enrolment is bringing pensions to people who might never have had one. If adequacy and coverage are further addressed, it could become even better.

If there was a mandatory requirement for employers to discuss pensions when advertising jobs or interviewing people, it could create the kind of culture where pensions are an integral part of what makes an employer attractive or not – something that is still not considered to a sufficient degree by job applicants.

Before ending I would like to sincerely apologise to all our readers of the print edition, who on December 12 were unintentionally cheated out of the second part of our cover story about Reuters. If you would like to read the full article, you can now do so here.

We wish you a very successful 2017.

Sandra Wolf is editor at Pensions Expert. You can follow her on Twitter @SandraCWK and the team @pensions_expert.