This week, we were delighted to see a new self-certificate regime for Defined Benefit Master Trusts introduced by the Pension and Lifetime Savings Association (PLSA).

The self-certificates are a standardised template designed to enable DB master trusts – multi-employer schemes for non-related sponsors – to provide clear information on the key features of such arrangements for trustee boards, employers and advisers who are considering consolidation.

The template was designed by an industry working group led by the Department for Work and Pensions (DWP) and Punter Southall was proud to be involved in the process.

We were joined by Abrdn, Deloitte, Citrus – Hymans Robertson, Mercer, the Pensions and Lifetime Savings Association (PLSA), the Pensions Management Institute, TPT and Travers Smith.

Guy Opperman, minister for pensions and financial inclusion welcomed the new documents because they 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.”

We see self-certification as a major milestone that will boost the uptake of DB Master Trusts. The self-certificates will provide trustees with standardised information and help them make informed decisions about consolidation options, and this will be key in reassuring them and in encouraging the uptake of DB Master Trusts.

Currently, schemes aren’t doing enough to consider consolidation and we hope this will shift the dial. Consolidation is a key issue for DB schemes right now and especially for smaller schemes who stand to benefit the most.

So, Stoneport is pleased to be joining the PLSA next week at an event focused on consolidation. Our senior consultant Margaret de Valois FIA is speaking at their first Yorkshire virtual seminar of the 2021/2022 season on Tuesday 9 November 2021 at midday.

The session, entitled “Consolidation for Small Schemes”, will focus on the unique challenges Smaller Defined Benefit pension schemes face relating to disproportionate levels of costs and barriers to good governance.

If you are running a small scheme and are considering consolidation, why not sign up here.