A new voluntary assurance framework designed to boost confidence in the governance and administration of master trust defined contribution pension schemes has been published
A new voluntary assurance framework designed to boost confidence in the governance and administration of master trust defined contribution pension schemes has been published
The framework has been developed by the Pensions Regulator in conjunction with the Institute of Chartered Accountants in England and Wales (ICAEW).
It sets out what is expected from trustees' assurance reports against a series of 'control objectives' on governance and administration, which are aligned to TPR's DC code of practice and regulatory guidance.
The regulator said it expects master trusts to provide their first report in accordance with this framework for periods ending in the financial year 2014/15.
Andrew Warwick-Thompson, TPR's executive director for DC, governance and administration, said that, while the framework was voluntary, he expected master trusts to obtain the independent assurance.
'We expect well-run master trusts to play a central role in helping people retire with an adequate income in the future,' he said.
'It is important that schemes operating in this market place are scalable, durable, well-governed and embrace high standards of practice. Assurance acts as a check against schemes being set up by people who lack the competence or financial resources to take care of people's pension savings adequately.'
Henry Irving, head of ICAEW's audit and assurance faculty, added that confidence in the governance and administration of master trusts are very important 'whether you are an employer or an employee'.
He said: '[The guidance] offers practical guidance to accountants and auditors on the provision of independent assurance, setting out the procedures required to assess the effectiveness of a master trust's control procedures.'
TPR said it would establish and maintain a publicly available list of master trusts that had obtained independent assurance to which employers and advisers could refer when selecting a scheme for automatic enrolment.