Key takeaways
- A master trust is a multi-employer defined contribution pension run by a single board of trustees, which many unconnected employers can join.
- Since 1 October 2018 every new master trust must be authorised by the Pensions Regulator before it can operate.
- The Pensions Regulator's list of authorised master trusts names 29 schemes, including Nest, The People's Pension, NOW: Pensions and Smart Pension.
- To be authorised under the Pension Schemes Act 2017, a master trust must show its people are fit and proper, it is financially sustainable, its systems are sufficient and it has a continuity strategy.
- Master trusts are regulated by the Pensions Regulator under trust law; group personal pensions are contract-based and regulated by the Financial Conduct Authority.
- The Pension Schemes Act 2026, which received Royal Assent on 29 April 2026, will require master trust default funds to reach at least £25bn by 2030, or be on track.
- Nest charges members 1.8% of contributions plus 0.3% a year; NOW: Pensions charges £2 a month plus 0.3% a year.
A master trust is a workplace pension that many unrelated employers share, run by one board of trustees and authorised by the Pensions Regulator. It is a common way for small UK employers to meet their auto-enrolment duties. Nest, The People’s Pension, NOW: Pensions and Smart Pension are all master trusts.
What is a master trust pension?
A master trust is a multi-employer defined contribution (DC) occupational pension scheme. Each employer signs up to the same trust instead of setting up its own, so the trustees, investment funds and administration are shared.
Each member has their own pot. The value depends on what goes in and how the investments perform, as with any DC pension. The employer’s job is to enrol staff, deduct and pay contributions, and keep records.
How are master trusts regulated?
Master trusts must be authorised and supervised by the Pensions Regulator (TPR). The Pension Schemes Act 2017 brought in the regime, and TPR says that from 1 October 2018 every new master trust must be authorised before it can operate.
Section 5 of the 2017 Act sets the authorisation criteria. TPR must be satisfied that:
- the people involved in the scheme are fit and proper
- the scheme is financially sustainable
- each scheme funder meets the Act’s requirements
- its systems and processes are sufficient to run it effectively
- it has an adequate continuity strategy if things go wrong
Two further tests, investment capability and a scale requirement, were inserted for specified purposes from 29 April 2026 by the Pension Schemes Act 2026.
Who are the main master trust providers?
TPR publishes the official list of authorised master trusts. It named 29 schemes when we checked on 6 November 2026. Some serve one industry or employer group, such as the Universities Superannuation Scheme. Those open to small employers in general include, alphabetically:
- Aegon Master Trust
- Aviva Master Trust
- Cushon Master Trust
- Legal & General WorkSave Mastertrust
- National Employment Savings Trust (Nest)
- NOW: Pensions Trust
- The People’s Pension
- Scottish Widows Master Trust
- Smart Pension Master Trust
- Standard Life DC Master Trust
Entry terms differ, so check whether a provider accepts direct sign-ups from an employer of your size before you apply.
What do master trusts charge?
Charges differ by provider and are usually paid by members as a percentage of their pot, sometimes with a flat fee. Two published examples, checked on 6 November 2026:
| Provider | Member charges | Employer charges |
|---|---|---|
| Nest | 1.8% of contributions plus 0.3% a year | None |
| NOW: Pensions | £2 a month plus 0.3% a year | £36 a month plus VAT direct, less via a payroll bureau |
Nest’s charges are the same for every member. NOW: Pensions does not take its monthly fee if it would cut a pot to £100 or less, and charges employers nothing where no workers are paying in. Our guide to the cheapest workplace pensions compares more providers.
Master trust or group personal pension?
The main alternative for small employers is a group personal pension (GPP). Both meet the auto-enrolment rules; the difference is the legal structure.
| Point | Master trust | Group personal pension |
|---|---|---|
| Legal form | Trust, run by trustees | Individual contracts with an insurer |
| Regulator | The Pensions Regulator | Financial Conduct Authority |
| Value for money oversight | Trustees | Independent Governance Committee |
| Typical route in | Direct online sign-up | Often through an adviser |
Royal London is an example of a provider whose workplace pension is not on TPR’s master trust list. See Royal London vs NEST for a side-by-side view.
What is changing for master trusts?
The Pension Schemes Act 2026 received Royal Assent on 29 April 2026 and will push master trusts to consolidate. Hymans Robertson’s briefing summarises the main dates:
- Scale. Master trusts and GPPs used for auto-enrolment must have default funds of at least £25bn by 2030, or be on track to reach it by 2035. This cannot come into force before 1 January 2030.
- Value for money. Regulations are expected in 2026/27, with compliance from 2028.
- Small pots. Consolidation regulations are also expected in 2026/27, with compliance from 2028.
Smaller master trusts may merge or close as a result. If yours does, members’ pots move to another authorised scheme, but you may need to update payroll and staff communications.
Which applies to you?
- If you want to set up a scheme yourself, online, a master trust is usually the simplest route.
- If you are a director-only company with no staff, you may have no auto-enrolment duty. See auto-enrolment for directors.
- If you use an adviser and want tailored investment options, compare master trusts with a GPP.
- If your current master trust is small, ask the trustees how they plan to meet the 2030 scale test.
What to do now
- Check your scheme is on TPR’s authorised list. If it is a master trust, it must be.
- Compare charges on your own staff’s pay and pot sizes, not headline rates.
- Confirm payroll compatibility before you sign up.
- Read our auto-enrolment guide for your ongoing duties.
Frequently asked questions
What is a master trust pension?
It is a defined contribution workplace pension that many unconnected employers can join, run by one board of trustees and authorised by the Pensions Regulator.
Are master trusts safe?
Every master trust must meet TPR’s authorisation criteria, including financial sustainability and a continuity strategy. Investment values can still fall, as with any DC pension.
How many master trusts are there?
TPR’s list of authorised master trusts named 29 schemes on 6 November 2026. The number has fallen over time as schemes merged or closed.
Is Nest a master trust?
Yes. The National Employment Savings Trust appears on TPR’s list of authorised master trusts.
What happens if a master trust closes?
Its continuity strategy sets out how members are protected. Pots are usually transferred to another authorised scheme, and employers must then pay contributions to a new qualifying scheme.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.
- List of authorised master trusts (The Pensions Regulator)
- Master trust pension schemes (The Pensions Regulator)
- Pension Schemes Act 2017, section 5: authorisation criteria (legislation.gov.uk)
- Briefing note: the Pension Schemes Act 2026 (Hymans Robertson)
- Nest charges for members (Nest)
- Clear, competitive charges for employers (NOW: Pensions)