The Department of Social Protection (DSP), in conjunction with the Pensions Authority, is working on the “development of proposals to provide for an enhanced legal underpinning for a master trust regime in Ireland”, according to Minister for Social Protection, Dara Calleary.

During his speech at the Irish Association of Pension Fund’s Annual Dinner last month, Calleary said the features and risks of multi-employer Master Trust scheme arrangements differ from traditional single employer-sponsored schemes.

“To reflect these particular risks, it is essential to introduce appropriate and adequate obligations under law on the trustees of master trusts over and above those required of single employer schemes. Such additional obligations will further support the sound management of master trusts and protect the rights of master trust scheme members,” he said.

The Irish master trust market reached €32bn in assets under management (AUM), as of the end of November 2024, according to Pensions Authority figures. There were also 17 master trusts operating in Ireland with approximately 580,000 members.

Calleary who covered the various sections of the pensions landscape in Ireland in his speech, such as the forthcoming automatic enrolment scheme and the state pension, said that occupational pensions “continue to play an important role for the over 1.5 million members of these schemes”.

“Work is underway to identify and further develop measures to simplify and harmonise the pensions landscape and to enhance overall scheme governance. As you are all aware, post IORP II, the pensions market is undergoing substantial change through consolidation, with fewer new schemes being established and a move towards master trusts and personal retirement saving products,” he said.

In addition, Calleary said the consolidation of pension schemes into master trusts is “expected to facilitate enhanced supervision by the Pensions Authority”.

He also believes it will help to improve the overall standards of scheme governance and security as well as increase economies of scale which should facilitate lower costs to members.

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