The Pensions Regulator (TPR) has published a statement to help trustees of defined contribution (DC) master trusts assess their growth potential and operational readiness ahead of proposed new “scale” requirements in the Pension Schemes Bill. The statement also encourages employers and advisers considering switching pension schemes to take an evidence-based approach focused on saver outcomes during the transition. Building on the Department for Work and Pensions’ Policy Principles Paper, TPR sets out principles for trustees to evaluate whether they can grow to scale, develop evidence-based projections, and review governance, systems and processes for future challenges and opportunities. It points to new analysis suggesting momentum and growth potential across the master trust sector, and cautions advisers and employers against assuming that master trusts not yet at scale will be unable to meet the requirements within the stated timescales. The Bill is expected to require DC master trusts to hold at least GBP 25bn of assets under management in a main scale default arrangement from 2030, alongside a transition pathway for schemes that need longer; TPR highlights areas for trustees to examine, including organic and inorganic growth options, demographic and contribution-flow assumptions, investment governance alignment with wider reforms, and implications for members’ value for money and long-term outcomes.

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