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Master Trust

The consultation period ended on 11 September 2020. IMI will write to you later this month to confirm the decision.

FAQs were last updated on 20 August

So, who could the IMI Master Trust provider be?

IMI has completed an extensive review of Master Trust providers and if the proposed changes go ahead, Mercer Master Trust (MMT) would be IMI’s preferred Master Trust provider.

Master Trusts have grown in popularity over the last five years and there are many providers offering a range of different propositions. MMT is one of the top Master Trust providers and has been assessed to be a good choice as it offers a range of services to support you, the members.

It is important to remember that if the proposal is approved and IMI joins the MMT, IMI would still retain its own identity within the Trust and be able to apply its own criteria.

The MMT already has 43 participating companies, which represents around 88,000 members and total assets in excess of £2.4bn. Pretty impressive numbers that bring strength and security.

The MMT is governed by an independent Trustee Board. This is a robust team of pension professionals who know what to look out for and who have an overview of how the Trust is managed.

For you, the member, the MMT would offer a comprehensive package of communications and technology so that you would have up-to-date information on your pension investments. You would have access to the online financial wellness platform, Mercer Money, via your computer or an app, which would ensure you are never more than a few clicks away from being able to access your account and make investment changes.

What makes the proposed Master Trust different to the existing Scheme?

If IMI decides to go ahead with the proposal, many aspects of your pension would not change. The following table sets out the key similarities and differences between the RSP and the proposed arrangement (the MMT).

The current scheme
(RSP)
The proposed arrangement
(MMT)
Administrator
The current scheme (RSP)

Willis Towers Watson

The proposed arrangement (Mercer Master Trust)

Mercer Master Trust (MMT)

Governance
The current scheme (RSP)

The Trustee oversees the RSP. The Trustee is made up of five Trustee Directors – some are chosen by IMI and some are selected by you, the RSP members.

The proposed arrangement (Mercer Master Trust)

Independent Trustee Board to oversee the Master Trust. A Governance Group set up by IMI will regularly meet with Mercer to discuss service levels and any member feedback going forward. It will have direct access to the independent members of the Trustee Board. The MMT Trustees are industry experts with a great deal of knowledge and experience in the pensions sector.

Eligibility for new hires to join the plan
The current scheme (RSP)

Eligible employees are auto-enrolled in the RSP.

The proposed arrangement (Mercer Master Trust)

No change.

Tax relief
The current scheme (RSP)

Contributions are made using a salary sacrifice arrangement. Members get full tax relief on their contributions (subject to their personal Annual Allowance).

The proposed arrangement (Mercer Master Trust)

No change.

Minimum age for retirement
The current scheme (RSP)

Age 55.

The proposed arrangement (Mercer Master Trust)

No change.

Retirement options
The current scheme (RSP)

You can take up to 25% of your fund value as tax-free cash at retirement with the remainder taken as:

  • A single lump sum (taxed at your personal tax rate);
  • An annuity; or
  • Income drawdown over a period of five years.
The proposed arrangement (Mercer Master Trust)

You can take up to 25% of your fund value as tax-free cash at retirement with the remainder taken as:

  • A single or multiple lump sum (taxed at your personal tax rate);
  • An annuity; or
  • Income Drawdown with no fixed period (no minimum fund value or set-up fees)
Life assurance / death benefits payable
The current scheme (RSP)

Life assurance is provided to all UK employees at a minimum of three times Basic Salary.

For active members of the RSP, a refund of your current fund value and a death-in-service lump sum is payable, at the Trustee’s discretion.

For deferred members the RSP, a refund of your current fund value is payable, at the Trustee’s discretion.

The proposed arrangement (Mercer Master Trust)

No change.

Online tools
The current scheme (RSP)

Optimize, the RSP website and Willis Towers Watson ePA

The proposed arrangement (Mercer Master Trust)

Optimize and the RSP website plus access to the financial wellness platform, Mercer Money, via your computer or an app.

IMI and the RSP Trustees believe that the MMT would offer you an online experience that is simpler and more comprehensive than the current RSP website.

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