A defined benefit (DB) master trust self-certification regime has been launched in an effort to help scheme trustees and employers who may be considering this as a consolidation option to understand the key features.

The master trust self-certificates are a standard template allowing DB master trusts to provide information on their structure and how they operate and will be hosted by the Pensions and Lifetime Savings Association (PLSA).

The PLSA has also published guidance to support DB master trusts completing the process, although it clarified that while self-certificates provide useful information about the DB master trust, they are not an assessment of the quality of the scheme.

The template was designed by a Department for Work and Pensions (DWP)-led industry working group, which included Abrdn, Deloitte, Hymans Robertson, Mercer, the PLSA, the Pensions Management Institute, Punter Southall, TPT and Travers Smith.

The concept for a self-certification regime was first raised in the DWP’s DB White Paper in 2018, with Pensions Minister, Guy Opperman, recently confirming that these proposals would be taken forward at the PLSA Annual Conference 2021 earlier this month.

Commenting on today’s launch of the regime, Opperman added: “Self-certificates will make it easier for pension scheme trustees and employers to consider if a master trust is right for them by providing information on how they work and the benefits they bring.

“Consolidation is key to achieving value for money – driving lower costs and opening doors to wider investment opportunities. I encourage all providers of DB master trusts to submit a self-certificate.”

PLSA deputy director, policy, Joe Dabrowski, commented: “We are pleased to be working with DWP and the wider industry to bring DB master trust self-certificates to the sector on the PLSA website.

“Schemes of all sizes can be run well and offer value for money, but for those schemes that are interested in consolidation we hope this new self-certification process will facilitate informed discussion.”

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