Day 1
Bill Proposes to Move DC Pension Schemes to Master Trusts Administration
A Bill which seeks to amend the Constitution to allow for the future administration of the Church of Ireland Defined Contribution Schemes under the rules of master trusts (i.e. retirement benefits pension schemes used by multiple employers or deemed emplo
Proposed by Robert Neill and Canon Harry Gilmore, Bill No 11 seeks to move to administer the Defined Contribution Schemes for clergy under Master Trust rules.
The Representative Body has determined that it is in the interests of members of the DC schemes for the Representative Body to identify the Master Trusts considered most suitable for the DC schemes and for the DC schemes to be administered under Master Trust rules. To do this the RB is seeking the approval of Synod to amend sections of Chapter XIV of the Constitution as part of the future administration of the DC schemes under Master Trust rules. Additional steps required will be put to General Synod in a motion.
Mr Neill explained that a Master Trust enabled an employer with an occupational pension scheme to join with other employers with occupational pension schemes under a single trust deed regulating all participating pension schemes.
“A Master Trust creates economies of scale, replacing multiple individual trust deeds with a single trust deed applicable to all participating pension schemes, reducing costs and delivering time efficiencies associated with managing a Defined Contribution pension scheme. At the same time, by virtue of their size, the providers of a Master Trust can invest more in service, governance and security,” he stated.
He added that the RB had engaged PriceWaterhouseCoopers to advice them and following consultations the RB Executive Committee recommended Mercer as the Master Trust provider for each jurisdiction based on investment performance, member engagement and the positive existing relationship with them as fund manager for the Clergy Defined Contribution pension schemes. He said that the costs of the changes would be borne by the RCB and there would be no risks to the members from the transition process.
The Bill will receive its third reading on Tuesday May 14 online.