Mastertrusts: Myths and reality

Aidan McLoughlin, MD of the Independent Trustee Company, weighs the pros and cons of a Mastertrust pension scheme

Understanding the jargon: It's vital that you seek independent advice and be aware of the alternatives when considering a Mastertrust.

A recent article bemoaned the fact that so few pension schemes were moving to Mastertrusts. Implicitly someone wasn’t doing their job. But is it that simple? Are Mastertrusts the way of the future and only troglodytes can fail to see this?

I believe the situation is much more nuanced and there are very good reasons why this option might not be chosen. First, a bit of disclosure is necessary. The author is a director of companies which are currently providing services to several Mastertrusts both in Ireland and Malta. Arguably, this biases me in their favour, and I do acknowledge that they can be a good option in the right set of circumstances.