Don't kill the goose that lays the golden egg

Charles Counsell, Chief Executive of The Pensions Regulator (TPR) made a serious and important remark to the recent meeting of the Work & Pensions Committee.  Recognising the importance of good governance, especially of smaller schemes, he said that the industry needs consolidation vehicles like DB master trusts – such as Citrus – and superfunds.

The number of small DB schemes is well known, with Charles Counsell expressing the view that they can be less well managed and less well governed than larger schemes.  Citrus certainly has experience of relieving employers and trustees of management and governance challenges, and of demonstrating to the Citrus section members the added value and protection afforded by master trust membership.

But could Counsell be about to take the role of panto baddy as he says that the regulation around DB master trusts should be toughened?  Could he be about to kill the goose that offers smaller DB schemes the opportunity to finally find a golden egg or two which can provide much needed help in securing better outcomes for members and their scheme sponsors, and give confidence to smaller schemes’ trustees to trust in the likes of Citrus as “guardian” of their scheme until benefits are secured?

The background is quite different for DB master trusts from that which saw DC master trusts needing greater rigour to ensure that members and the market enjoy the best support.  DB master trusts are something of a sleeping beauty, with the potential to offer so much to so many.  Let’s hope TPR doesn’t propose an ugly sister of a regime for DB master trusts.  Nobody likes a baddy – do they boys and girls…..

For more information on DB master trusts and how Citrus could help your scheme, please contact us.