IORP II perhaps?It appears this is due to some changes in EU rules which would mean higher costs for our existing scheme, therefore moving to the master trust to reduce those costs using scale to their advantage.
Is there really any point in comparing historical performance? Seems to me that it's only useful to compare charges with a view towards minimising them, and to ensure that the pension is invested in an appropriate asset mix, ideally (in my opinion) with a high or full equity content. And maybe choose an index tracking fund to mitigate performance issues due to active management by people who, ultimately, can't predict the market/future.3. What's the default fund, what are the fees specifically on the default fund, how does the default fund performance compare to the old default fund.
Side note, when comparing pension fund performance you should be looking over 5 and 10 year periods. Ignore anything less than 3 years.
No changes to charges?It does outline that there will be no changes to charges, etc etc and nothing needs to be done..
Under IORPS II, there is a huge amount of additional obligations on schemes that is going to increase the cost. Shifting to a master trust will provide economies of scale. But given the additional reporting and obligations required, I doubt you will see a reduction in charges, especially initially while they are being implemented. There may be a reduction in the future once providers have a better idea of costs when everything is fully implemented.No changes to charges?
One advantage of master trusts is the fees are usually lower, unless the fees were already very low this could be one question. Not sure what the average fee is now with mastertrusts - but below 0.5% seems to be typical.
But given the additional reporting and obligations required, I doubt you will see a reduction in charges, especially initially while they are being implemented.
Hello,
I've a small DB scheme benefit, along with AVCs, from a previous employment.
I've recently been advised that the AVC element is being moved to a MasterTrust (no impact on DB scheme, which is seperate). Awaiting paperwork, but indication is that there will be no changes to fees, they'll still offer a similar range of investment funds etc.
Is there the option to redirect the funds (AVCs) to an alternative, both now and perhaps in the future, or am I simply being told that my funds are going into the new MasterTrust, end of story?
Truth be told, my key concern is that it'll be a very hands off, and extremely passive approach to managing the funds, once they go into the MasterTrust, hence my question about ability to transfer, both now and in the future?
Many thanks,
I haven't understood that part of the Master Trust rationale: by moving from a scheme with trustees aligned to the employment to trustees far removed from the employment is supposed to better look after the members' interests.Hello,
I've a small DB scheme benefit, along with AVCs, from a previous employment.
I've recently been advised that the AVC element is being moved to a MasterTrust (no impact on DB scheme, which is seperate). Awaiting paperwork, but indication is that there will be no changes to fees, they'll still offer a similar range of investment funds etc.
Is there the option to redirect the funds (AVCs) to an alternative, both now and perhaps in the future, or am I simply being told that my funds are going into the new MasterTrust, end of story?
Truth be told, my key concern is that it'll be a very hands off, and extremely passive approach to managing the funds, once they go into the MasterTrust, hence my question about ability to transfer, both now and in the future?
Many thanks,
I haven't understood that part of the Master Trust rationale: by moving from a scheme with trustees aligned to the employment to trustees far removed from the employment is supposed to better look after the members' interests.
I think moving to a MasterTrust is actually to your benefit. A MasterTrust is just some Backoffice government legal mumbo jumbo that allows (nay encourages), the tens of thousands of different pension schemes in Ireland to consolidate down into a handful of much bigger schemes. They want to do this because it is then much easier to have oversight on a few big Trusts instead of thousands of small schemes. This should benefit you with more professionalism, economies of scale and lower fees.Truth be told, my key concern is that it'll be a very hands off, and extremely passive approach to managing the funds, once they go into the MasterTrust, hence my question about ability to transfer, both now and in the future?
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