PTL also announced this week it would be offering a year’s free membership to new clients in the PTL GLMT.
Richard Butcher, managing director at PTL commented, “Since 2010 we have also been appointed by three insurers to run their GLMTs. At the moment we have more than 100,000 lives ‘on risk’ and are handling around 10 claims a month across the four trusts.
“With the advent of auto-enrolment, many employers – recent examples being Marks & Spencer, Sainsburys, Mothercare and the Co-operative Group – are now enrolling staff into multi-employer arrangements such as DC master trusts and Nest. Should this trend continue it will, in time, result in far fewer single employer trusts going forwards – meaning employers choosing a similar route for those employees for whom they provide just life cover.”
“Since the Pensions Act 2004 it has been illegal for pension schemes to provide life assurance benefits to members who have no actual or potential pension interest in a scheme. Therefore employers who wanted to continue to provide life assurance only benefits had to either set up and run a ‘life only’ trust or join a GLMT. As the former are not straightforward to operate, many viewed the master trust solution as a better option as it reduced the work that they had to do and the compliance risk.”
