NOW: Pensions authorised by UK regulator

NOW: Pensions, one of the UK’s largest master trusts, has been authorised by the country’s regulator.

The £1.3bn (€1.5bn) multi-employer defined contribution (DC) fund’s authorisation was announced this morning by The Pensions Regulator (TPR) along with that of three other master trusts.

Joanne Segars, chair of trustees at NOW: Pensions, said: “The master trust authorisation regime ensures high standards are upheld, giving workers enrolled into a workplace pension the confidence that their employers have chosen their pension provider wisely. 

“We want workers to feel reassured that their hard-earned pension savings are being regulated and are in responsible hands. As the number of people enrolled is only set to rise, it is important that the industry is held accountable.”

NOW: Pensions was launched in 2011 by Danish pension giant ATP. Despite growing into one of the largest auto-enrolment providers, it has faced a number of issues.

A change of administration provider in 2014-15 led to problems processing and investing contributions. The provider removed itself from TPR’s list of approved master trusts in 2017 and was fined £70,000 by TPR in 2018 in connection with the problems.

The provider has also been criticised by rivals for its charging structure, with some arguing that it is possible for smaller pots to be eroded down to zero over time. 

ATP sold NOW: Pensions to Cardano earlier this year, with Patrick Luthi subsequently replacing Troy Clutterbuck as CEO.

NOW: Pensions is the pension provider for IPE International Publishers.

Other trusts authorised

The other trusts signed off by TPR today were Scottish Widows’ multi-employer DC fund, Punter Southall’s Aspire Savings Trust, and the ITB Pension Funds, which runs £1.3bn worth of defined benefit and DC pensions for the construction industry.

Steve Butler, CEO of Punter Southall Aspire, said: “The authorisation process has been rigorous. It involved a complete examination of our scheme’s capabilities, including our systems, processes and technology, our governance and financial sustainability. We are delighted to have met the standards, which was an important last step for us being ready to welcome new members.” 

Today’s announcement brought the total number of authorised auto-enrolment providers to 31. TPR received 38 applications in total. No master trust has failed the authorisation process so far.

DC master trusts were required to apply for authorisation by 31 March this year as part of the UK’s efforts to improve standards in the auto-enrolment market. It included new capital requirements, formalised processes and higher governance standards.

As of today, the full list of authorised trusts is as follows: