Standard Life is launching a new retirement section to its master trust, aimed at employers and trustees of single or own-trust schemes.
This will enable single-trust schemes to offer more comprehensive at retirement options by utilising this master trust structure. Schemes can access this retirement options without switching into the master trust during the accumulation stage. Standard Life says this will give scheme members the opportunity to access income drawdown options, while still retaining the benefits of trustee oversight.
Standard LIfe says this addresses a number of issues in the ‘at retirement’ market, where choices have been more limited for those in own trust or single trust arrangements. It says it also addresses concerns surrounding the level of regulation and compliance required when offering in-scheme drawdown at retirement, by reducing the regulatory burden on trustees of these schemes.
Standard Life head of master trust Donna Walsh says: “Our new proposition opens access to the associated benefits of master trust arrangements and provides a win all-round to employers, trustees and most importantly members currently within own-trust schemes.
“Employers have considerable responsibility in running their businesses without having to contend with increasing and complex governance and a tightening compliance regime. Our research suggests very few own-trust schemes offer drawdown arrangements, as the cost and liability make this prohibitive.
“Our new solution helps eliminate this burden, in a cost-effective way, with the reassurance of oversight from independent trustees of our master trust. Consequently, we are seeing an increase in demand for this solution amongst employers and trustees and entering this market signals our ongoing commitment and investment in our master trust proposition.”
The Master Trust Retirement Section is available to members through their employer scheme when offered as a pension scheme option at retirement.
