TPT Retirement Solutions CEO Mike Ramsey has highlighted the vital role that the organisation’s DB Master Trust offering plays in helping schemes meet their pension obligations.
His comments follow a major industry event on the importance of DB consolidation, which brought together respected voices from the world of DB consolidation, as well as leading economist Dr Andrew Sentance CBE and journalist and political commentator Andrew Marr.
The event underlined the key benefits of DB consolidation, including:
- Better governance – the importance of professional and experienced trustees
- Reduced operational costs – by capturing efficiencies in administration and reduced adviser fees
- Improved risk management – leveraging economies of scale to access a broad range of investment solutions to manage risk and investment volatility
Another benefit cited was the freeing up of the considerable time spent on managing schemes and advisers and keeping abreast of ever-changing regulation.
“The benefits of consolidation for small to medium size schemes (up to £1bn) are clear. There is political will, industry interest and regulator encouragement to capture the benefits of consolidation and improve the chances of members’ pensions being fully met.” Mr Ramsey explained.
There are several consolidation vehicles now available, however the Master Trust solution is an option that schemes should explore closely. It offers the convenience, cost savings and governance that sponsors and trustees are looking for and, in TPT’s case, the scale to construct the investment options needed to manage risk and volatility, and generate investment returns.