The Pension Schemes Act 2017 introduces measures for authorising and supervising master trust pension schemes and new powers for The Pensions Regulator. Authorisation will start after regulations have been developed.
We expect those involved with running master trusts to understand how the 2017 Act affects their scheme now and to start making preparations for the future.
If you set up a new master trust you will have to satisfy us that your scheme meets a set of authorisation criteria before you can operate in the market. The criteria relate to providing money purchase benefits. You will also need to show that the scheme continues to meet the criteria to remain authorised.
Existing master trusts will also have to meet the criteria. You will have six months to apply for authorisation once the regime fully starts. We intend to provide further guidance and tools to help schemes prepare.