Deloitte Launches Defined Benefit Pensions Master Trust
23 February 2015
Deloitte today launches the Deloitte Pensions Master Plan, a multi-employer pension plan specifically for defined benefit (DB) schemes. It will be open to DB schemes, with current scheme trustees retaining control. Deloitte’s own DB pension scheme has agreed in principle to join the Plan, with assets under management in excess of £700m.
Mark McClintock, Deloitte pensions services partner, said: “DB pension arrangements have become an increasingly expensive overhead for many businesses in the backdrop of a challenging economic environment. The Deloitte Pensions Master Plan addresses this by consolidating DB schemes into a single trust where schemes can benefit from reduced fund management charges. Oversight from a single independent trustee will ensure each ring-fenced section will benefit from improved governance.”
The Deloitte Pensions Master Plan will allow each section to have its own trustees. On transferring into the Master Plan, the key elements of existing schemes will remain the same. These include member benefits, the trustee board, employers’ responsibilities and the schemes’ investments. Deloitte will provide scheme actuarial and pension administration services to the sections.
“This is a very exciting launch for UK pensions,” continues McClintock. “Deloitte’s experience advising and administering schemes ranging from less than £5m assets under management to over £1bn will be a core strength in helping the day-to-day running of the Master Plan.”
The initiative has been funded by Deloitte’s Innovation Council, an internal board established in 2013 to support smart idea development, and provide investment in innovative and unique programmes. The results of this have seen direct addressing of client challenges and real, tangible solutions for Deloitte clients. The Deloitte Pensions Master Plan was backed, following a competitive internal assessment process. The resultant funding covered legal advice costs, talent expansion, and an upgrade of Deloitte’s existing software infrastructure to service a larger scale of business.
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