Can a DB master trust help me achieve my endgame?
Whatever your preferred endgame, a defined benefit (DB) master trust can smooth your journey.
DB master trust pension schemes are increasingly popular as DB schemes face the combined pressures of rising costs, extra complexity and a growing governance burden.
A DB master trust combines many schemes under one trust to provide individual schemes the benefits of scale and professional expertise. Each scheme is ring-fenced and the sponsor continues to pay contributions with high-level oversight.
DB Master trusts could help DB schemes achieve self-sufficiency faster by improving governance, providing better investment options and reducing costs compared with remaining as a standalone scheme.
Depending on a DB scheme’s circumstances, a DB master trust can also support it on the path to buyout by reducing risk so that the scheme can transfer liabilities to an insurer.
The trustees of a good DB master trust will work with the scheme’s sponsor to decide on the best approach to secure members’ benefits.
Buyout or self-sufficiency, a DB master trust could help
The right DB master trust combines pension expertise, pooled buying power, journey planning, stronger governance and broader investment options. These features can enable your DB scheme achieve its endgame faster and more efficiently than it may be able to do on its own.
Head of Risk Transfer, Mercer
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