Master Trust & Bulk transfer from DC legacy trust
After much consideration and independent legal advice the senior management team at INVISTA Textiles UK Limited agreed my suggested approach following a successful close to future accrual. A trust based approach was felt right for this medium sized traditionally paternalistic manufacturing employer. A Master Trust enabled first class governance, low charges and a turnkey solution for their ongoing pension requirements. This reduced the ongoing governance burden on the DB trustees giving them the time to focus on managing the legacy DB trust plan. It also met with the approval of the unionised workforce and enabled a bulk transfer without consent from the legacy trust DC section retaining the £30m assets and future purchasing power. This would aid future negotiations if terms could be improved in an increasingly competitive market.