Master trust pension

garrob

Afternoon folks,
 The company I am employed by has sent me an email saying they will be starting a consultation to change from our DC pension to a Legal and general master trust.
Should I be worried? Is there any questions that I need to ask? they said they are going to do salary sacrifice as well which would lower my NIC. Would that affect my Gov pension?

dunstonh

Should I be worried? 

no

Is there any questions that I need to ask? 

Nothing that shouldn't already be covered in the consultation notes but be on the look out for comparison of charges and changes in the employer contribution.

they said they are going to do salary sacrifice as well which would lower my NIC.

That is a positive of the change if the existing scheme doesn't support that option.

Would that affect my Gov pension?

no.

xylophone

Would that affect my Gov pension?

https://forums.moneysavingexpert.com/discussion/comment/78854097/#Comment_78854097

You have already reached your maximum.

 At

£186.39 a week

 it is just a fraction over a full new state pension.

See   https://techzone.abrdn.com/public/pensions/Tech-guide-new-state-pension

State Pension increases

£185.15 will revalue under the "triple lock" and the balance ("protected payment")

 by CPI.

As advised in your state pension forecast, while it will not add to your SP, you will continue to pay NI up to SPA (if working and earning the relevant amount).

With regard to the proposed new scheme, below may be of interest.

https://www.legalandgeneral.com/employer/workplace-pensions/products/worksave-pension-mastertrust/ 

garrob

Many thanks for your replies, really appreciate it.

gm0

@garrob - I use a version of the L&G Master Trust pension (sometimes also called PAS (Pension Access Scheme) or Worksave.   There are a number of Worksave schemes from employers already using it that publish their scheme info on the internet.  This will not be accurate to your scheme but will be of a type.

Basically it's fine.  So far as I can determine - still using insured funds (100% protection), the digital is more than a bit lacking, It supports drawdown (which may not matter to you yet and you can always transfer somewhere else). 

Your trustees/employer will do a deal and the equivalent of platform charge will be X.  And X might be very good.  Or Meh. Or unattractive.  Worth knowing but doesn't change the attractiveness of employer contributions.

What does matter around the change is whether the ongoing employer contributions and matching rules are continuing at same or better % and what are the "platform" and fund charges.  Are they better/same/worse for funds you like and viewed across the range.

We had the MT added alongside our old trust (the old one did not bulk transfer and close). 
But it can be done different ways dependent upon the objective and nature of the existing scheme, employees etc.

Once the trustees and employer action the contract and the migration is planned and done then communications will begin at relaunch.  It is extremely hard to get definitive information on funds and charges out of L&G ahead of this point.  You are not their customer.  Pension comms is quite regulated.  So they don't.  Until the new deal is actually in place they are most resistant to talking to you or putting anything in writing. 

Your first port of call would be the consultation info and your HR/pensions admin team if any at your employer.  Or ask an employee trustee the question. It would be nice to think they would include these key facts but nothing suprises me these days on pension comms.