In becoming a Trustee Director of an occupational pension scheme, you are choosing to take on an extremely important role.
The Trustee company is the legal owner of the pension scheme assets. The Trustee Directors have to act:
As a Trustee Director, you agree to a shared responsibility for the proper running of the Scheme – from the collection of contributions, to the investment of assets and the payment of benefits. The Scheme members rely on the Trustee Directors to ensure that the Scheme is well managed.
Whilst being a great responsibility, be assured that advice is available from a range of sources, including your fellow Trustee Directors, your professional advisers, pensions organisations such as the Pensions Management Institute, the Pensions and Lifetime Savings Association and The Pensions Regulator, particularly through their Trustee toolkit. A link to the toolkit can be found at the bottom of this page.
If you are considering becoming a Trustee Director, you will need to gain an understanding of some basic details about pensions and the legal framework surrounding occupational pensions.
The law requires that Trustee Directors have knowledge and understanding of (among other things) the law relating to pensions and Trusts, as well as the principles relating to the funding of pension schemes and the investment of scheme assets. The law also requires you to be familiar with certain scheme documents including the Trust Deed and Rules, the Statement of Investment Principles and the Statement of Funding Principles.
The Pensions Regulator's code of practice about Trustee knowledge and understanding explains what Trustees need to do in order to comply with the law.
New Trustee Directors must acquire the appropriate knowledge and understanding within six months of being appointed. The Pensions Regulator has created a free e-learning programme called the Trustee toolkit to help Trustee Directors get up to speed without incurring any additional cost. Indeed the Scheme will pay subsistence and expenses where costs are reasonably incurred.
The Trustee toolkit is a highly engaging, interactive online learning experience. You're able to test your knowledge and understanding as you go along and print out a development record to prove your achievements.
