DB master trust pension schemes are increasingly popular as DB schemes face the combined pressures of rising costs, extra complexity and a growing governance burden.
A DB master trust combines many schemes under one trust to provide individual schemes the benefits of scale and professional expertise. Each scheme is ring-fenced and the sponsor continues to pay contributions with high-level oversight.
DB Master trusts could help DB schemes achieve self-sufficiency faster by improving governance, providing better investment options and reducing costs compared with remaining as a standalone scheme.
Depending on a DB scheme’s circumstances, a DB master trust can also support it on the path to buyout by reducing risk so that the scheme can transfer liabilities to an insurer.
The trustees of a good DB master trust will work with the scheme’s sponsor to decide on the best approach to secure members’ benefits.
Buyout or self-sufficiency, a DB master trust could help
Before you access this page, please read and accept the terms and legal notices below. You’re about to enter a page intended for sophisticated, institutional investors only.
This content is provided for informational purposes only. The information provided does not constitute, and should not be construed as, an offer to sell, or a solicitation of an offer to buy, any securities, or an offer, invitation or solicitation of any specific products or the investment management services of Mercer, or an offer or invitation to enter into any portfolio management mandate with Mercer.
Past performance is not an indication of future performance. If you are not able to accept these terms and conditions, please decline and do not proceed further. We reserve the right to suspend or withdraw access to any page(s) included on this website without notice at any time and Mercer accepts no liability if, for any reason, these pages are unavailable at any time or for any period.