The Mercer Master Trust Mercer Workplace Savings the next generation 14 January 2014

Transcription

1 The Mercer Master Trust Mercer Workplace Savings the next generation Alan Pickering Roger Breeden London - Tower Place PENSIONS PEOPLE VALUE, WHATEVER THEIR PRIORITIES IN LIFE

2 Content 1 2 Master Trust Back to basics Why the resurgence? 3 What are the alternatives 4 The Mercer Master Trust 5 Introducing BESTrustees 6 Moving to a Master Trust Mercer Limited 2011 MERCER 1

3 Polling question 1 Have you considered moving to a Master Trust? 1. We will be implementing in the next 6 months, we have a provider. 2. We will be implementing in the next 12 months, we are looking at options. 3. Considering, keen to understand more. 4. Still evaluating longer term plans MERCER 2

4 Master Trust back to basics PENSIONS PEOPLE VALUE, WHATEVER THEIR PRIORITIES IN LIFE PENSIONS PEOPLE VALUE FROM MERCER 3

5 Master Trust back to basics A master trust can be defined as an occupational trust-based pension scheme established by declaration of trust which is or has been promoted to provide benefits to employers which are not connected and where each employer group is not included in a separate section with its own trustees. PENSIONS PEOPLE VALUE FROM MERCER 4

6 Why the resurgence? PENSIONS PEOPLE VALUE, WHATEVER THEIR PRIORITIES IN LIFE PENSIONS PEOPLE VALUE FROM MERCER 5

7 Why the resurgence? Market Context Government and Regulatory requirements for employers and the pension market to deliver better member outcomes Improved governance Value for money and Effective, engaging communications Employer landscape Employers with trust based schemes seeking to allocate less resource to managing pensions Employers with contract based schemes concerned about an increasing governance obligation PENSIONS PEOPLE VALUE FROM MERCER 6

8 Master Trust can help deliver the Quality Features required by The Pension Regulator TPR s six elements Can Master Trust help? Appropriate contribution decisions* Appropriate investment decisions Efficient and effective administration Protection of assets Value for money Appropriate decumulation decisions *Core contribution decision at employer level although on line tools support member planning Mercer Limited 2011 PENSIONS PEOPLE VALUE FROM MERCER 7 7

9 What are the alternatives? PENSIONS PEOPLE VALUE, WHATEVER THEIR PRIORITIES IN LIFE PENSIONS PEOPLE VALUE, WHATEVER THEIR PRIORITIES IN LIFE PENSIONS PEOPLE VALUE FROM MERCER 8

10 What are the alternatives? Legal structure Complexity Governance Contract-based (GPP, Stakeholder, Group SIPP) The contract is directly between the member and the provider, facilitated by the employer Used to be seen as the less onerous, cheaper and arms length method of delivering pension Voluntary and less clearly defined M A S T E R T R U S T Trust-based The contract is between the member, trustees and employer Typically a more complex but flexible DC vehicle, very focused on members Duties & responsibilities very clear Regulation FCA tpr PENSIONS PEOPLE VALUE FROM MERCER 9

11 Introducing the Mercer Master Trust PENSIONS PEOPLE VALUE, WHATEVER THEIR PRIORITIES IN LIFE PENSIONS PEOPLE VALUE FROM MERCER 10

12 The MWS range of solutions More than 100 clients Mercer Workplace Savings Ongoing Governance More than 4bn committed Administrator Investment Only Platform Master Trust Bundled Trust Group Personal Pension Plan Self-Invested Pension Plan Trustee Buy-out Policy Cash ISA Stocks & Shares ISA General Investment Account Mercer blended funds and A-rated funds A better way to access and deliver workplace pensions and savings products PENSIONS PEOPLE VALUE FROM MERCER 11 11

13 How does the Mercer Master Trust Work? Administration / Provider Selection advice TOMAS OMO Annuity Services This image cannot currently be displayed. Workplace Savings Platform Best investment ideas Rigorous Ongoing Operational Governance PENSIONS PEOPLE VALUE FROM MERCER 12

14 Investment advice provided to the Trustee on behalf of the employers Investment Adviser to Trustee Independent Trustee Continual Oversight Mercer Workplace Savings MWS Governance Administrator A Administrator B Administrator C Employer 1 Employer 2 Employer 3 Employer 4 Employer 5 Employer 6 Each employer s arrangement is a separate section within the Master Trust. MERCER

15 Benefits to employers Commitment to employees Focus on retirement outcomes Best of Mercer embedded Saves time Value for money Flexibility Simplicity Controls risk Focus on core business PENSIONS PEOPLE VALUE FROM MERCER 14

16 Introducing BESTrustees Alan Pickering PENSIONS PEOPLE VALUE, WHATEVER THEIR PRIORITIES IN LIFE PENSIONS PEOPLE VALUE FROM MERCER 15

17 BESTrustees Our business, our philosophy and our role. Our approach to DC Our approach to governance that is robust and pragmatic. Our Relationship with Mercer Our team delivering governance on the Mercer Master Trust Alan Pickering, Zahir Fazal & Harold Lewis Delivering the governance framework PENSIONS PEOPLE VALUE FROM MERCER 16

18 Polling question 2 Question 2: What is your primary driver for considering a Master Trust? 1. Cost & time savings 2. Delegate trusteeship & governance 3. Help meet regulatory requirements 4. To deliver pensions our employees value PENSIONS PEOPLE VALUE FROM MERCER 17

19 Moving to a Master Trust PENSIONS PEOPLE VALUE, WHATEVER THEIR PRIORITIES IN LIFE 18

20 Summary Oversight by Mercer and BESTrustees Choice of providers Experienced consultancy and transitional support PENSIONS PEOPLE VALUE FROM MERCER 19

21 Questions? PENSIONS PEOPLE VALUE, WHATEVER THEIR PRIORITIES IN LIFE PENSIONS PEOPLE VALUE, WHATEVER THEIR PRIORITIES IN LIFE MERCER 20

22 Mercer Limited is authorised and regulated by the Financial Conduct Authority Registered in England No Registered Office: 1 Tower Place West, Tower Place, London EC3R 5BU