Transferring to a master trust usually involves a three-stage process.
The main stages are closing the existing scheme to future accrual, transferring accrued benefits to the master trust and winding up the existing scheme.

Ceasing accrual of DC benefits in the transferring scheme will usually require an amendment to be made to the scheme to stop employee and employer contributions.
The amendments should also cater for any other benefit no longer to be provided from the scheme such as death benefits.
Where trustees are required to consent to the amendment, they will need to consider whether they should agree to the proposed changes.

The Transfer Deed sets out the timing and mechanics for the transfer, as well as some ancillary provisions such as indemnities and warranties among the parties.
Each participating employer also signs up to the master trust by way of a Deed of Participation.
If an employer has been able to negotiate variations to the governing trust deed and rules, this is sometimes recorded in the Deed of Participation.

The employer and trustee should check that the transfer-out rule in the transferring scheme is wide enough to allow a bulk transfer of members' benefits without member consent.
Following a bulk transfer-out of all the assets of a DC-only scheme to a master trust, the employer and trustees will also want to wind up the transferring scheme.
The relevant scheme rule should therefore be reviewed to assess the appropriate steps to complete the winding-up process.

The trustees will want to check for an indemnity under the transferring scheme rules to ensure that any risks involved in the transfer are covered by an indemnity
This may be contained in the scheme rules or provided separately by the employer.
If there is no existing indemnity, the transferring trustees may consider requesting one from the employer.

The employer and trustees should consider the future provision of death benefits.
These may be provided through the master trust, by a separate trust, or may continue in the existing pension scheme.

To comply with their trust law duties, the trustees of the transferring scheme must ensure that the transfer of assets to the master trust is in members' interests.
This requires the trustees to consider the relative advantages and disadvantages of the transfer for members and will involve a comparison of the master trust to the transferring scheme.

There are various options for a master trust transfer but in practice the most common route today will be a transfer to a master trust that is authorised
The trustees of the transferring scheme could also transfer on the basis that they have obtained and considered written advice in relation to the transfer from an "appropriate adviser".

Information about the proposed transfer and details of the value of the rights to be transferred (including rights in respect of death-in-service benefits and survivors' benefits) must be provided to members not less than one month before the proposed transfer.

There are various statutory transitional protections that pension scheme members can benefit from to preserve more favourable tax treatment of their pension entitlements that existed for them before certain changes to pensions tax legislation were made.
These protections will not be lost where a member is transferred to a new arrangement if that transfer is a "block transfer" under pensions legislation such as a bulk transfer to a master trust.