Pensions chaos looms as firms admit lack of formal governance

Many
pension schemes lack formal governance, according to a poll by Mercer Human
Resource Consulting.

The
survey of attendees at a trustee governance seminar showed only 7 per cent said
they had written performance and operational objectives.

The
Department for Work and Pensions is currently finalising plans to introduce a
new pensions regulator, which will mean pensions trustees will need to ensure
their management procedures stand up to scrutiny.

Elizabeth
Renshaw, European partner at Mercer, said: “Without written objectives and
policies, they will struggle to demonstrate they have adequate risk management
systems, frameworks for effective decision making or accountability to
members.”

By Michael Millar

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