Action needed to avoid additional costs on Group Pension Schemes

You will be aware that in July, the Pensions Authority issued guidance in relation to Trustee Reports which indicate that full Annual Report and Audited Accounts are required for all pension schemes with less than 100 members.

The costs associated with procuring audit services for stand-alone schemes are expected to be significant. However, the Pensions Authority have stated that if a formal commitment is made to wind up a scheme and to transfer the assets into a Master Trust or PRSA during 2023, this requirement, and thus the potential additional cost, can be avoided.

A solution with the Zurich Master Trust

The good news is that we can migrate your existing Zurich pension schemes into the Zurich Master Trust during 2023, thus avoiding the additional costs. Our solution will be to assist your client to wind up its existing company pension scheme and for the trustees to transfer the assets of the scheme into the Zurich Master Trust, removing the immediate burden of these additional costs on the employer. Zurich will process the transition into the Zurich Master Trust in 2023 at no additional cost to the employer and with no impact on scheme members. The process will take place over several months - we will confirm timelines in due course, but we will ensure that schemes transition before the end of 2023.

Transitioning to the Zurich Master Trust – act now

Now is the time to talk to your clients about making a formal commitment to wind-up their existing company pension scheme in 2023. This commitment will need to be provided by the employer or by the trustees (as appropriate) before 31st December 2022, with the wind up of the scheme being completed no later than 31st December 2023.

We need confirmation from the employer that a formal commitment is in place. We have created a simple template that you should use for this which should be sent to our Master Trust transition team via MasterTrust@zurich.com – a scanned copy or photograph will do. We will record this and ensure that your clients existing pension scheme transitions to the Zurich Master Trust in 2023.

If you have any queries, please contact your Zurich Broker Consultant. To find out more about the Zurich Master Trust, visit zurichcorporate.ie