Thought / 28 Mar 2018

How well is your pension scheme being managed?

The Pensions Regulator (TPR) continues to focus on governance, ensuring that trustees have the appropriate controls in place. But how well is your pension scheme managed?

TPR describes good governance as the ‘bedrock of a well-run pension scheme’ going on to state that ‘there is a clear link between good governance and good fund performance’, confirming that it is an essential part of effective scheme management. Without good governance, you’re unlikely to achieve a good outcome for members.

How well is your pension scheme managed?

So, with this in mind, how effective is your pension scheme being managed? Do you have a clear picture in terms of who does what and when things need to be done by?

Evaluating whether your pension scheme is managed effectually or if there is cause for concern can be done by looking at the following areas.

You may want to consider:

  • Generating a business plan for the scheme year.
  • A budget spreadsheet for expenses.
  • Producing a conflicts of interest protocol and Risk Register.
  • Creating an integrated Risk Management document.
  • Hospitality and gifts register.
  • Trustee Training log.
  • Process for reviewing how effective the Chairman and Board are in making decisions.
  • Any terms of Reference for sub-committees.

Many schemes will treat the above as a tick boxing exercise. However, to truly be proactive in your approach to governance, these bullet points need to be part of a thorough review to improve processes.

Reference The Pensions Regulator

Jay Solanki

Head of Trustee Secretarial Services

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