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An Independent Review of Trusteeship

In recent weeks you will have read about a review of trustees and trusteeship that has been commissioned by Professional Pensions and is being undertaken by Brian Holden MBE (Chairman, trm Advisory Service, Trustee Risk Management Ltd). The review has already attracted a great deal of interest and we would encourage you to take the opportunity of registering your views.

Brian’s terms of reference are:

“to review the current system and structure of trusteeship, with particular reference to the relevance and role of lay trustees, to examine the range of support available to trustees and to consider the prospect of a workable and sustainable trustee system in the future.”

Survey

Your details:
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The principal issues to be considered:
1. Is the role of the trustee and the system of trusteeship really understood?

2. Is this system a "19th century concept" as has been suggested, or is it still a system that can deal with today's scheme governance issues?

3. Does the move from trust-based DB schemes to contract-based DC schemes, or other alternative arrangements, require a broader, and lighter, regulatory approach?

4. What do scheme beneficiaries expect of their trustees, and are these expectations realistic?

5. Is there a 'best' framework trustee structure that can be suggested to schemes, rather than a firm prescriptive requirement?

6. Has the time arrived to seriously consider some form of payment for lay trustees?

7. Is the range of support available to trustees appropriate for modern day pension schemes and is it working?

8. Is trustee education and training at the right level for today's requirements and is it delivering?

9. Against the requirements reinforced by the Pensions Act 2004 and the ongoing debate about "lay trustees", can we go forward with a workable and sustainable trustee system of governance?

10. Any other aspects you consider important.

Brian will be reviewing all these issues during the coming months and will complete his draft report during the summer. The final report will be published in November. This may seem a long time off, but judging by the comprehensive range of material already received, it will be time much needed and hopefully well spent.

Trustees are at the heart of good pension scheme governance and we hope that you will submit your views to the issues raised and include your comments on any other aspects that you consider important.