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Deloitte launched defined benefit pensions master trust

26 February 2015

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A multi-employer pension plan specifically for defined benefit (DB) schemes has been launched by Deloitte.

The Deloitte Pensions Master Plan will be open to DB schemes, with current scheme trustees retaining control.

Deloitte's own DB pension scheme has agreed in principle to join the plan, with assets under management in excess of GBP 700m.

Mark McClintock, Deloitte pensions services partner, said: "DB pension arrangements have become an increasingly expensive overhead for many businesses in the backdrop of a challenging economic environment.

"The Deloitte Pensions Master Plan addresses this by consolidating DB schemes into a single trust where schemes can benefit from reduced fund management charges."

The way the new plan will work is that key elements of existing schemes will remain the same, including member benefits, the trustee board, employers' responsibilities and the schemes' investments, while Deloitte will provide scheme actuarial and pension administration services to the sections.

"This is a very exciting launch for UK pensions," continues Mark McClintock, "Deloitte's experience advising and administering schemes ranging from less than GBP 5m assets under management to over GBP 1bn will be a core strength in helping the day-to-day running of the Master Plan."

The initiative has been funded by Deloitte's Innovation Council, an internal board established in 2013 to support smart idea development, and provide investment in innovative and unique programmes.

The results of this have seen direct addressing of client challenges and real, tangible solutions for Deloitte clients, according to Mark McClintock.

Backing for the pensions master plan followed a competitive internal assessment process, and the resultant funding covered legal advice costs, talent expansion, and an upgrade of Deloitte's existing software infrastructure to service a larger scale of business.

First published 26.02.2015

Lindsay.sharman@wilmington.co.uk