Pension Trustees and Administration

Over recent years a series of important changes have been made to the legislation which governs pension schemes. One of the biggest changes surrounds the role and responsibilities of pension trustees.

Since the introduction of the Pensions Act 2004 and subsequent legislation, trustees, rather than the employer, have been put in the driving seat when it comes to running occupational pension schemes. This means that they will need to display greater knowledge and understanding of pensions than ever before.

Trustees must now:

• Decide on the contribution rate to be paid by all employers participating in the scheme
• Set the pension scheme’s investment policy and monitor the results being achieved by the appointed investment managers
• Provide members with an annual statement regarding the funding position of the scheme
• Ensure that their own advisers, including actuaries, lawyers and audits, are independent of the sponsoring employer
• Report failures in the running of the scheme which may be of material importance to the Pensions Regulator.

This handbook aims to set out the responsibilities now faced by trustees, not only in the day-to-day running of the scheme, but also with regard to the knowledge and understanding requirements imposed by the Pensions Regulator.

Contents of the Handbook

Published: November 2007