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Services for Trustees
Background
Trustees have always played a vital role in the operation of pension plans. The Pensions Act 1990 enhanced the role of trustees and introduced the requirement for member-nominated trustees. There is an increasing emphasis on excellence of governance. In consequence, the need for trustees to have a complete grasp of all that is required of them has never been greater.
Key Issues:
- Do the trustees have a clear idea of their responsibilities and statutory duties?
- Do the trustees use a "good governance" framework to manage all aspects of their scheme?
- Do the trustees have sufficient expertise in areas such as investment?
- Are the decision-making structures robust and efficient?
- Should there be a separate sub-committee for issues like investment? If so, what should be their terms of reference?
- Are there areas where the operation of the plan is lagging best practice?
- Do the trustees require training on any aspects of their role?
- Is the introduction of an independent trustee seen as desirable?
- Should the trustees be indemnified against personal loss, and if so how?
What we can do to assist you:
- We can advise on statutory responsibilities as well as current best practice in areas ranging from the structure of the trustee body to the efficiency of administrative procedures
- We can help create a good governance framework that helps the trustees discharge their responsibilities effectively and efficiently
- We can provide basic, intermediate or advanced training courses, on either a generic or plan-specific basis
- We can assist in the selection of an independent trustee
- We can advise on the optimal form of indemnifying trustees, including the desirability or otherwise of insurance
- We can provide trustee secretarial services.
What the results would be:
- Reassurance that statutory responsibilities are being met
- Confidence that best practice is being followed
- Well informed trustees with a thorough understanding of their rule
- Minimisation of exposure to personal financial loss through optimal indemnification arrangements.
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