Trustees

Most of the company pension schemes that Usdaw members have joined are governed by Trustees.

The Trustees 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.

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.

Member-Nominated Trustees
There is now a legal requirement that, at a minimum, one-third of Trustees be nominated by the scheme members.

Any scheme where they are not must comply before October 31st 2007. The law also establishes that members may eventually have the right to elect or appoint at least 50 per cent of trustees. The implementation date for this change is likely to be in 2009.

The facility for employers to opt-out of the requirements has been removed.

 We must ensure that we get as many Usdaw Member-Nominated Trustees as possible. They can play a vital role in the pension scheme, by being in effect, the ordinary members’ voice on the body that runs the scheme.

All Usdaw Trustees are encouraged to be part of the Usdaw Trustee network – and to receive advice, training and information to assist them in their work.

They can also become part of the TUC Trustees’ network through which they will receive regular briefings about pension schemes and other pension related matters.
We invite Member-Nominated Trustees to work closely with the Usdaw Pensions Section and to alert us to any possible changes and developments in their scheme. This is so that the appropriate negotiating officer can ensure that the union is consulted and involved.

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© 2003 (USDAW) Union of Shop, Distributive and Allied Workers
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