Trustees

Trustees are responsible for running company pension schemes.

They hold the scheme’s assets for the members and must act independently of the employer, for the benefit of scheme members.  Trustee powers are contained in documents called the Trust Deed and the Scheme’s Rules which they have a duty to follow.

All trustees, including company directors must act in the interests of the scheme’s members not from the business’ perspective.

Trustees are normally appointed by the employer or by existing trustees, or in accordance with the Trust Deed.  The law requires most schemes to have at least one third of the trustees nominated by the members.

For most types of schemes trustees have a legal duty to:

• Hold and take records of meetings, decisions and transactions.

• Keep financial and member records.

• Keep scheme assets separately from the business assets.

• Appoint professional advisers.

• Obtain an auditor’s statement and actuarial certificate.

• Make an annual report within seven months of the scheme year-end date.

• Take investment decisions (in accordance with the statement of investment principles) and appoint advisers for some investments.

• Provide information to members, beneficiaries and prospective members.

• Sort out member disputes.

The Pensions Act 2004 requires trustees to be trained, and have a clear understanding of their role and performance.

Trustees can be personally and jointly liable for scheme losses and subject to fines imposed by the Pensions Regulator if they fail to comply with legislation.

Trustees are allowed time off and protected by employment law from suffering any detriment or discrimination because of their duties.