Standard Life has expanded its Master Trust proposition with the launch of a retirement section for employers and trustees of Single Employer Defined Contribution Own Trust schemes.
Standard Life said the move “addresses concerns” surrounding the level of regulation and compliance required when offering in-scheme drawdown at retirement by reducing the regulatory burden on trustees of these schemes. It also ensures members continue to have the reassurance of trustee oversight within the Master Trust arrangement.
The retirement specialist said features of the new section include access to a wider choice of ‘at retirement’ solutions for employees without related costs and governance requirements on trustees, tailored scheme governance reporting with overview of member activity and lower costs for members compared to open market drawdown options.
In addition, members will have access to an experienced telephony guidance team and a mobile app. Members can also access the four individual investment pathways, allowing them to select a solution that meets their retirement and income needs.
Donna Walsh, head of Master Trust at Standard Life, said: “Our new proposition opens access to the associated benefits of Master Trust arrangements and provides a win all-round to employers, trustees and most importantly members currently within Own Trust schemes.”
Walsh said employers face significant responsibility in running their business without having to contend with increasing and complex governance and a tightening compliance regime.
She added: “Our research suggests very few Own Trust schemes offer drawdown arrangements, as the cost and liability make this prohibitive. Our new solution helps eliminate this burden, in a cost-effective way, with the reassurance of oversight from independent trustees of our Master Trust. Consequently, we are seeing an increase in demand for this solution amongst employers and trustees and entering this market signals our ongoing commitment and investment in our Master Trust proposition.”
