Employers face a real challenge to attract and retain quality pension scheme trustees following the tightening of standards on how schemes are run, industry experts have warned.
Trustees ensure that a pension scheme is run honestly and efficiently and in the best interests of the members.
Last week the Pensions Regulator published its three-year corporate plan, outlining its priorities for occupational pension schemes. The watchdog’s proposals include boosting governance of work-based pensions by improving the extent to which trustees demonstrate knowledge and understanding of governance requirements.
It also aims to reduce risks to members of defined contribution schemes by raising understanding among trustees and others involved in running such schemes.
Richard Murphy, a partner at consulting actuaries Lane Clark & Peacock, said: “The regulator is looking for year-on-year improvement in how UK pensions schemes are being run, and pension scheme trustees need to be aware that the bar is being raised.
“The responsibilities of pension scheme trustees have always been significant. A real challenge for employers will be to attract and retain trustees, now the standards they will be judged by are so clearly set out.”