First published in Pensions Expert on 27 April 2016
A couple of years ago Andrew Warwick-Thompson, executive director of defined contribution and public service pension schemes at the Pensions Regulator, was quoted as saying: “There are 70 mastertrusts and that’s 60 too many”.
Mastertrusts exist because of the need to deliver economies of scale to members – they will deliver those economies because of their scale. In other words, they need to be big to succeed from the members’ perspective.
It was, I suspect, partly this issue that sat behind Warwick-Thompson’s words, although he may also have been hinting at a slightly darker, more worrying issue: can 150 mastertrusts be financially stable?
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