Out-Law / Your Daily Need-To-Know

Changes in pensions and tax law, the increasing complexity of investment matters and increasing Pensions Regulator scrutiny of the governance of schemes have made it more difficult to run pension scheme trustee meetings. There are ways that trustees can ease this burden.

Keep a calendar

Use the items outlined in a scheme's business plan to schedule a rolling calendar of issues and events that need to be addressed over the next few years, and keep this regularly updated so as not to overlook anything. The calendar should also include general legal, accounting and investment matters that need to be addressed over a longer timeframe.

Agenda setting

You should follow up on all outstanding matters from the previous meeting. Meetings should also include agenda items that are not time restricted or not urgent, such as reviewing the internal controls of the pension scheme.

Send out agenda packs well in advance of meetings to ensure all those attending are fully abreast of the issues to be discussed at the next meeting and have time to prepare. Background information should be sent to help trustees evaluate issues fully. This information could include, for example, guidance or codes of practice issued by the Pensions Regulator.

The meeting agenda should include enough time for important strategic issues to be discussed and decisions taken. All trustees should have the opportunity to participate in discussions and ask questions. The chairman of the meeting should try to contact people who are not able to make the meeting to discover their opinion and represent it during the meeting. The chairman must also intervene when discussions focus too finely on points of detail to ensure that the main issues of the meeting are addressed.

Invite advisers

You should consider inviting pension scheme advisers to your meetings. This will help build good relations with advisers who attend regularly and help keep them fully informed of all the issues you face. Advisers may be able to answer questions or provide advice on the spot, which may save the trustees time and money in the long run. Advisers who regularly attend may also be able to identify potential issues and problems before they arise.

Delegate tasks

It may save time and help to spread the workload by setting up sub-committees within the trustee board. Sub-committees could cover, for example, investment matters and deciding upon discretionary benefit payments. The subcommittees should report to the main trustee board on a regular basis.

Training

It is good practice to review your leaning needs regularly, perhaps once a year. Trustees whose knowledge is up to date will be able to take decisions more effectively. You should keep a record of formal and informal training.

Have important documents readily available

Keep a folder of documents to hand for reference at meetings. These documents may include the pension scheme rule, the trust deed and rules, the latest annual reports and accounts, the latest actuarial valuation reports, what tasks have been delegated, sub-committee details, the internal dispute resolution procedure, the scheme's conflict of interest policy, the member booklet, the statement of interest principles, the schedule of contributions and the memorandum and articles of association for corporate trustees.

Managing conflicts of interest

You need to identify and manage any conflicts of interest that arise during the course of a meeting. Details of what the conflicts are, and what action was taken to manage the conflicts, must be recorded in the pension scheme's conflicts register and noted in the meeting minutes. Sometimes you may need legal advice. Remember that discussions at trustee meetings are confidential.

Recording meetings

All meetings should be carefully minuted and minutes should pay particular attention to trustee decisions and the reasons behind them. Ensure that matters that have to be acted upon are highlighted. Draft minutes should be circulated as soon as possible after the meeting. Final copies should be kept throughout the lifetime of the pension scheme.

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