The Mercer DB Master Trust – saving you time and money

• What is a DB master trust?
• Why choose a DB Master Trust?
• Why the Mercer DB Master Trust?
• Meet our trustees
• Meet the DB Master Trust team

A DB master trust is an occupational defined benefit pension scheme used by multiple non-associated employers.

Employers can transfer their DB pension scheme assets and liabilities to a master trust, which then manages the day-to-day operations. The employer’s existing scheme can then be wound up.

DB master trusts are typically sectionalised, where each employer has their own section with its own ringfenced assets.

By bringing together many schemes under one trust, individual schemes gain the benefits of scale.

The best DB master trusts help employers achieve their long-term goals by offering improved governance and better value investment options through greater buying power. 

The Mercer DB Master Trust brings together Mercer’s range of pension expertise with our £400bn buying power as the world’s largest fiduciary manager. It enables employers to reach their pension endgame more easily by:

1. taking on fiduciary management of their pension assets to monitor investment markets and funding levels in real time to lock in any favourable short-term pricing.
2. assuring quality governance provided from three professional trustees from separate independent trustee firms who govern the Master Trust under advice from Mercer’s range of pension experts.
3. allowing the employers to agree an endgame and letting the Master Trust team get on with achieving it. The endgame can be run-off – where a scheme becomes fully funded and no more employer contributions are required – or buyout – where benefits are secured with an insurer.

Each employer section receives a tailored strategy, taking into account its funding, covenant, ultimate end-goal, and desired time frame.

Importantly, employers have the option to retain the transferring scheme’s current administrator, ensuring no disruption for members and a quicker onboarding process.