The trustee takes on governance responsibility for each section on things such as investment funds and service providers and will ensure compliance with regulatory duties.
It is normal for the sponsoring employer to cover the running costs of its trust based scheme, with members having some exposure to investment fees.
In a traditional trust based scheme, the trustees are able to replace their service providers, such as administrators or investment managers.
The framework was designed to evidence the key quality features set out in The Pensions Regulator’s code of practice for defined contribution schemes.
[5] Master trust pension schemes have existed for many years, but came to prominence after the introduction of automatic enrolment.