On the go: The Pensions Regulator has authorised a further four master trusts to continue operating in the defined contribution market, including the once embattled provider Now Pensions.
Life company Scottish Widows also saw its master trust join the list of companies permitted to operate in the market, alongside the Aspire Savings Trust and The ITB Pension Funds. The latest round rings the total number of authorised schemes to 31, out of 49 applicants.
With almost 2m members, Now Pensions is one of the largest providers in the master trust market, typically catering for those brought into pension savings by auto-enrolment.
However, its journey to this point has been marred by issues with administration. Now removed itself from the regulator’s list of approved master trusts in 2017 and was fined in 2018. Its charging structure, which involves a flat fee component, has also been scrutinised by the Work and Pensions Committee.
Joanne Segars, chair of Now Pensions’ trustee board, said: “I am thrilled that Now Pensions has been authorised. The master trust authorisation regime ensures high standards are upheld, giving workers enrolled into a workplace pension the confidence that their employers have chosen their pension provider wisely.
“We want workers to feel reassured that their hard-earned pension savings are being regulated and are in responsible hands. As the number of people enrolled is only set to rise, it is important that the industry is held accountable.”
Jeff Sayers, Scottish Widows’ managing director of pensions and investments, said: “As auto-enrolment continues to have a positive impact on the nation’s savings, we are delighted to offer employers and employees the benefits of an authorised master trust. This sits alongside a full range of choices for workplace and individual customer needs, as they look to save for their financial future and retirement.
“Scottish Widows will continue to evolve our proposition, and work even harder towards delivering good outcomes for our members.”
