Part 1

Master Trusts

Definition of a Master Trust scheme

Master Trust schemes: definition
1
1
In this Act, “Master Trust scheme” means an occupational pension scheme which—
a
provides money purchase benefits (whether alone or in conjunction with other benefits),
b
is used, or intended to be used, by two or more employers,
c
is not used, or intended to be used, only by employers which are connected with each other, and
d
is not a relevant public service pension scheme.
2
Where a Master Trust scheme provides money purchase benefits in conjunction with other benefits, references in the following provisions of this Act to a Master Trust scheme are to a Master Trust scheme only to the extent that it provides money purchase benefits, except as provided in section 39(2) to (4).
3
For the purposes of this section, an employer (“A”) is connected with another employer (“B”)—
a
where A is, or has been, a group undertaking in relation to B within the meaning of section 1161(5) of the Companies Act 2006, or
b
in circumstances specified in regulations made by the Secretary of State.
4
In this section—
- “employer”, in relation to an occupational pension scheme, means a person who employs or engages persons who are, or are entitled to become, members of the scheme;
- “money purchase benefits” has the same meaning as in the Pension Schemes Act 1993 (see section 181 of that Act);
- “occupational pension scheme” has the same meaning as in the Pension Schemes Act 1993 (see section 1(1) of that Act);
- “relevant public service pension scheme” has the meaning given in section 2.
5
Regulations under this section are subject to affirmative resolution procedure.