The master trust is designed for schemes with upwards of £20m in assets that want a more streamlined approach and a drawdown solution. Called the Aon MasterTrust, the firm says it completes its line up of services for the UK’s DC market.
The trust has a three-person trustee board chaired by Roger Mattingly of Pan Trustees, alongside, Nicki Mortimer of Capital Cranfield and Kim Nash of PTL.
The service offers a fully automated auto-enrolment solution and built in drawdown option and retirement support propositions.
Aon Hewitt partner and head of DC Consulting Sophia Singleton says: “Running a pension scheme is not getting any easier – in fact, it’s getting increasingly onerous, complex and costly. With the launch of The Aon MasterTrust we have aimed to deliver a solution that offers employers the best of both worlds – a trust-based approach which is outsourced to experts. We are also fulfilling an increasing demand; responses to our upcoming DC survey showed that almost 10% of schemes expect to convert to a master trust over the next five years.
“By launching Aon MasterTrust we are also completing Aon’s range of DC services – advisory, investment only, bundled services, contract-based and now a master trust. The new pension freedoms have also increased demand for decumulation solutions so now is the perfect time to launch our product which includes in-built drawdown.”
