Railways Pension Scheme’s DC master trust receives authorisation

Kim Kaveh reports...

The Railways Pension Scheme’s Industry Wide Defined Contribution (IWDC) Section has become the 12th master trust to be authorised by The Pensions Regulator (TPR).

The £118m scheme  – which is run by the Railways Pension Trustee Company through its subsidiaries RPMI and RPMI Railpen – announced the approval today (6 August), meaning it will continue to serve its almost 8,800 members.

Trustee chairman Chris Hannon said: “Gaining authorisation is testament to the hard work and expertise of the master trust team and to the quality of service we offer our members and clients, giving them the assurance that they are with the right provider.

“We will continue to develop the IWDC Section offering within this new framework, improving our credentials to existing and prospective clients.

“High governance and oversight standards are the way we deliver a great experience and outcomes to IWDC Section members.”

The news follows a month of silence from the regulator, with the last approval having been given to Mercer’s master trust. The previous week, the watchdog announced that the DC master trusts of TPT Retirement Solutions, Standard Life, and Fidelity had all been given the stamp of approval.

Schemes had until the end of March to apply, or they would have been forced to wind up and transfer members to an authorised scheme, unless they had agreed an extension with the regulator.

Some 44 schemes have exited or triggered their exit from the market according to TPR’s latest exit figures. These include the Ascot Lloyd Pension Trust and the McDonald’s Franchisee Pension Scheme.

Other master trusts so far authorised include the Universities Superannuation Scheme, BlueSky Pension Scheme, The Crystal Trust, and Willis Towers Watson’s LifeSight, which was the first to receive authorisation from the regulator in February.