On the go: Nest, the master trust set up by the government to back auto-enrolment, has received authorisation from the Pensions Regulator, along with four other multi-employer schemes.
The Aegon Master Trust, Creative Pension Trust, Ensign Retirement Plan and The Baptist Pension Scheme also join the list of approved providers, bringing the total number of authorised schemes to 27.
The authorisation regime was brought in to boost the quality of scheme governance among the UK's multi-employer trusts, after concerns about sub-scale providers and poor management.
So far 49 providers have applied and 27 have gained authorisation. With the regulator still clearing a backlog of applications, it is not yet known whether any applicants have been rejected.
Successful applicants must prove they have good governance, robust systems for administration, a strong business backing them and a sustainable business model.
Reflecting on Nest's passing of these hurdles, chair Otto Thoresensaid: “The master trust authorisation regime is key to ensuring high standards of governance and control across this part of the pensions landscape, so we’re glad to have achieved this milestone.
“With many workers saving for the first time through auto-enrolment, it’s right to build confidence among pension savers. We’ll continue to work hard at achieving good outcomes for our eight million members.”
Life company Aegon has been a provider of contract-based pensions in the UK for many years now, but only acquired a master trust as part of its deal to take over the defined contribution and administration business of fund giant Blackrock.
Kate Smith, head of master trust at Aegon UK, is responsible for leading the development of Aegon’s master trust proposition, including the authorisation process.
“It’s been exciting to see how the new and improved master trusts market has been shaping up over the last few months, and we are delighted that the Aegon Master Trust has joined the line-up of those authorised.
“Raised standards among master trusts means greater protection for members of all master trusts, something I have been calling for over many years. As supervision starts to kick in, master trust standards will have to continue to be maintained to retain authorisation."
