Master Trust

A Master Trust in the UK is a multi-employer occupational pension scheme.

Traditionally, a trust based pension scheme is established by an employer for its employees. Representatives of that employer will then usually form the majority of the trustee board which is responsible for governing the trust. By contrast, a master trust is typically set up by a provider, often an insurance company. There is one legal trust and one trustee board, but a number of non-associated employers can participate in the scheme. Each participating employer will have one or more sections within the master arrangement. The trustee takes on governance responsibility for each section on things such as investment funds and service providers and will ensure compliance with regulatory duties. The decisions over benefit and contribution levels will normally remain with each participating employer.