On the go: With just days to go before the deadline of March 31, the National Pension Trust has submitted its application to The Pensions Regulator for master trust authorisation.
It joins 13 other providers that have applied so far. Only one scheme, Willis Towers Watson's LifeSight, has successfully gained authorisation.
There seems a real possibility that many master trusts are not going to meet the March 31 deadline, and will have to close, or get an extension to the deadline.
The Pensions Regulator’s monthly report, published on 6 March, states: “Eight schemes have exited the master trust market so far, and a further 31 have notified us of a triggering event to exit the market, and will transfer their members to an alternative master trust scheme or other appropriate vehicle.”
The remaining 38 master trust schemes will have to either apply for authorisation or trigger their exit from the market.
Under the Pension Schemes Act 2017, trustees can apply for an extension of up to six weeks beyond the authorisation application window.
For it to be granted, they must satisfy the Pensions Regulator that there is good reason for the application, which the watchdog has said it will consider carefully based on the individual circumstances.
As at 28 February 2019, one scheme has been approved for an extension.
