Corinthian's Master Trust will soon have to comply with five new benchmarks to provide a five-star service.
Corinthian’s preferred pension scheme, Salvus Master Trust, has already achieved the Master Trust Assurance Framework (MAF) accreditation. This is the Pensions Regulator’s new standard. It has also received a five-star rating from Defaqto, the independent financial products researcher.
In future, all Master Trusts will have to meet the tough new authorisation criteria outlined in the Pension Schemes Bill. This includes new capital requirements, with the scheme funder meeting certain requirements that give assurance about its financial situation.
They also need to demonstrate adequate governance and administration processes, an adequate “continuity strategy,” and that trustees are fit and proper persons. The legislation is currently at draft stage and will be subject to change (and probably to extensive lobbying) as it passes through Parliament.
The Corinthian Group has welcomed the new regulations. “We think this is an important and necessary Bill,” said Robert MacGregor, Corinthian Group managing director. “Value for money and high standards should apply to all pensions. The government needs to raise standards for poorly performing, single employer trusts and ensure that independent governance committees are doing their job effectively.”