Trustees Issues
Trustees must be mindful not to overstep their powers or be expected to take responsibility for matters that should not be within their remit. On the other hand, trustees shouldn't over delegate to the extent that overall control is difficult to identify. There can often be uncertainty on an individual basis where involvement starts or stops.
The overall objective is to operate an efficient pension scheme with good pension scheme governance.
What can you do?
Where an Employer exists, good working relationships need to be in place with each to understand and accept the defined responsibilities set out for the trust. There are a few simple steps you can take to ensure effective pension scheme governance, including;
• Have a clear summary of responsibilities, as set out within the Trust Documents
• Be sure to identify the role of the Pensions Manager (if there is one) for practical purposes
• Agree clear communication routes to avoid confusion, overlap or omission
• Agree clear reporting lines with agents to ensure good working relationships
Where generic terms like 'Trustees' and ' Principal Employer ' are used, clear communication routes need to be in place to ensure no confusion, overlap or omission.
Whilst strategic decisions need to recognise the practical implications, this does not imply that trustees should be fully involved with daily transactions and activities, but they do need to be satisfied that that each aspect is under control.
Click here to find out more about how the ARC Benefits approach can create a clear path forward.
Or go to Solutions to find out what our virtual pensions manager can do to help you on your way.