Who is insured
To achieve OPDU's aim of insuring everyone who might become liable for a loss as a result of internal maladministration of the pension fund, the insured has been broadly defined to include:

•  Trustees
•  Corporate Trustees
•  Directors of Corporate Trustees
•  The Pension Fund
•  Sponsoring Employers
•  Internal Advisers
•  Internal Administrators
•  Internal Dispute Managers

This helps to reduce internal conflicts and eliminate disputes between insurers representing different interests.

What is covered
To achieve OPDU's aim of providing an external resource for reimbursing losses suffered by the pension fund, even in some circumstances where no person is legally liable for the loss, the cover provided is broad and includes:

Errors and omissions
Trustees and employees engaged in the administration of the pension fund are covered for losses suffered as a result of wrongful acts, such as breach of trust, negligence or misrepresentation.

Regulatory civil fines and penalties
Trustees, employees and sponsoring employers are covered for civil fines and penalties imposed by TPR, and for legal costs incurred in connection with TPR investigations and prosecutions.

Ombudsman complaints
Trustees, employees and sponsoring employers are covered for awards made by the Pensions Ombudsman and for legal costs incurred in defending determinations and appealing his decisions.

Defence costs
Trustees, employees and sponsoring employers are covered for legal costs and expenses incurred in defending claims brought against them in connection with their duties to the Pension Fund. These costs can include references to alternative dispute resolution and arbitration.

Employer indemnities
Where the sponsoring employer is required to indemnify a trustee or employee, OPDU's cover reimburses the employer for the indemnity, thus offering valuable balance sheet protection.

Exonerated losses
Where persons cannot be held liable for Net Loss caused to the pension fund by wrongful acts as a result of being excused by exoneration clauses in the trust deed, OPDU's policy can nevertheless reimburse the loss to the pension fund under its Net Loss cover.

Litigation costs
Sometimes issues arise where the trustees are advised to seek directions or a declaration from the court as to future conduct of matters or the inter- pretation of trust documents. Normally several interests have to be represented by separate lawyers and all parties costs have to be met out of the pension fund. OPDU's Litigation Costs Extension, an optional cover, reimburses costs ordered to be paid out of the pension fund.

Retirement cover
During a pension fund's membership of OPDU, all retired trustees and administrators are
insured. If a pension fund leaves OPDU, retired trustees and retired named administrators automatically qualify for personal insurance cover for up to 12 years from their date of retirement. This provides individuals with valuable peace of mind in their retirement when they no longer have any say in whether their pension fund should purchase insurance cover.