Master Trusts – What Employers Still Need to Watch For

The shift to Master Trusts has been one of the most significant changes in the Irish pensions landscape in recent years. For many employers, it offered a welcome solution to the increasing burden of pension governance, particularly under IORP II.

But moving to a Master Trust doesn’t mean your responsibilities as an employer have disappeared - they’ve simply changed. In fact, how you engage with the Master Trust can have a direct impact on the value and experience your employees receive.

Here’s what employers still need to watch for - and why proactive involvement still matters.

1. You Still Have a Governance Role

While the day-to-day trustee duties now sit with the Master Trust, employers are still expected to act as responsible stakeholders. This means:

• Monitoring how the Master Trust is delivering for your members

• Understanding the default investment strategy and whether it suits your workforce

• Staying informed on policy updates, regulatory changes, and scheme developments

• Engaging in annual governance reviews and maintaining open communication with the provider

The Master Trust model is not a ‘set and forget’ arrangement - your oversight remains essential.

2. Communication with Members is Still Your Job

Even though the Master Trust handles much of the administration, employers still have a key role in:

• Promoting pension awareness within the organisation

• Encouraging staff to complete risk profiling and make active investment choices

• Helping employees understand their retirement options, contributions, and benefits

Where possible, employers should coordinate with the Master Trust provider on member engagement strategies. A joint approach ensures consistency, clarity, and greater impact.

3. Investment Strategy – One Size May Not Fit All

Master Trusts typically offer a standard default investment strategy, which may not fully reflect the demographics or needs of your workforce. As an employer, it’s worth reviewing:

• How suitable the default is for your employee base

• Whether there are options for customisation or layered communications

• If the investment choices offered support members approaching retirement, younger staff, or those with ESG preferences

Even within a Master Trust, there’s room for employer input to help shape outcomes.

4. Scheme Charges – Understand What You’re Paying For

While Master Trusts are often more cost-efficient than standalone schemes, charges can vary and transparency is key. Employers should understand:

• The charging structure and who pays what (employer vs member)

• What services are included - and what might be extra

• How fees compare to the market and whether there is value for money

Annual value assessments are becoming the norm - and employers should be reviewing these closely.

5. Member Outcomes Still Matter

Ultimately, the success of any pension arrangement comes down to the outcomes it delivers for members. Employers should:

• Monitor contribution levels and whether they’re adequate for retirement

• Support employees in accessing tools and advice

• Keep an eye on engagement rates and participation levels

Master Trusts can help simplify pension management, but employers still set the tone when it comes to how pensions are valued in the workplace.

Final Thoughts

Transitioning to a Master Trust is not the end of your governance journey - it’s the start of a new chapter. Employers still play a vital role in shaping outcomes, supporting employees, and ensuring the chosen solution is fit for purpose.

With the right oversight and engagement, Master Trusts can deliver excellent results - but they work best when employers remain active, informed, and invested in the process.

Independent Trustee Limited offers a helping hand throughout this transition - providing guidance, governance support, and peace of mind long after the move has been made.

If you're considering a Master Trust move - or want to review how your current arrangement is performing - get in touch with our team for a confidential chat.

Helen Doyle, ITL Business Development Manager