Master Trust Executive Pension Solution
th Nov 2022 |
All new and existing Executive Pension Plans (EPPs) must be set up under or transferred to a Master Trust Executive Pension arrangement. All EPPs are employer-owned but exist for the benefit of the employee, meaning proper investment oversight is required by way of more robust trustee governance. New Trustee responsibilities have led to higher costs, but these can be avoided via a new Master Trust Solution. You can also reduce your existing plan costs, as well as enhance your investment returns through our latest low-cost Master Trust solution outlined below.
In the past employers, themselves could act as the Trustee, or have an independent one appointed through their pension product provider. This worked without any added cost up until new European pensions legislation known as IORP II, imposed additional Trustee responsibilities to include full Annual Reports and Audited Accounts.
Newly available Master Trust – Executive products provide you with a much-needed, comprehensive solution to the governance challenges that have arisen on the back of the implementation of the IORP II regulations, but without added cost.
Master Trust Deadline
Any existing Executive Pension Plans set up after 22 April 2021 who wish to transfer to a Master Trust must have the employer complete and return confirmation prior to the end of this year 31st December 2022. Alternatively, they can switch their existing plan to a new provider’s plan by completing a new Master Trust Executive Pension application and then transferring the funds from the old provider to the new Master Trust provider.
New Cost Savings Opportunity
For owners of existing Executive Pension Plans, this represents a real opportunity to reduce the costs associated with their plan.
Existing Executive Pension Plan holders can then choose to transfer to an alternative provider arrangement and immediately make substantial cost savings by not only reducing its all-important annual management charge (AMC) levied against the plan’s holdings over time, but also removing a host of other charges.
Enhanced Investment Opportunity
Switching to a Master Trust which is essential to avoid adding cost to all Executive Pensions, also presents an ideal opportunity to review your plan’s investment performance and were required your ESG investment preferences. Consider the following:
1. Are you happy with the returns being achieved?
2. Are you in a default fund or do you have a bespoke portfolio?
3. Are you reliant only on a single fund manager strategy?
4. Does your plan provider offer sufficient fund manager choice?
5. Does your plan provider offer sufficient fund choice within your risk profile?
6. Does your plan provider offer both passive and active fund choices?
7. Does your broker/financial advisor meet your performance expectations?
Why switch to One Quote Financial Brokers?
Our leading Master Trust EPPs available to existing Executive Pensions Plan switches:
* Unbeatable Charges
• Excellence in Governance
• World-Class Investment Options
• Bespoke Risk Management
• Award Winning Client Portal
* Our leading EPP Mater Trust solution
• Plan AMC from: 1.00% PA
• Contribution charge: None
• Early exit charges: None
• Fund switching charges: None
• Policy Fee: None
Frequently Asked Questions
1. How do I switch EPP providers?
Complete a new master Trust EPP application and transfer your existing fund.
2. Will 100% of my current fund value get transferred?
Yes, we will only transfer plans where no exit penalties exist.
3. How long will my existing EPP need to be in existence, before there are no exit penalties?
Typically, 4-5 years dependent on the set-up commission paid to your financial advisor/broker.
4. How many fund managers are offered under this low-cost EPP option?
It offers 6 leading fund managers and over 30 funds in forming a bespoke flexible portfolio.
5. Is a minimum monthly contribution level required?
Yes, the minimum contribution is €500.00 PM to qualify.
6. Do I have to switch to a Master Trust arrangement?
Yes, unless you wish to take on governance responsibilities plus audit costs as the employer.
7. Do I have to switch to a Master Trust before the end of 2022?
Yes, but only if your EPP was set up after 22nd April 2021, otherwise you have more time yet to be confirmed by the Pensions Board. We would recommend switching now regardless of your particualr deadline for immediate cost savings.
Prior to contact, please note the following information will be sought:
1. Your name, age, and contact number.
2. Proof of existing retirement benefits.
3. Current value of existing retirement benefits.
Contact: Ken O’Gorman – Director – QFA, SIA, MCIBS – Pension Specialist – One Quote Financial Brokers on: 01 845 0049 or email: [email protected]
Or enquire online and let us know how best to get back to you.