Why appoint a professional trustee?

This has lead to more schemes appointing professional independent trustees.

A good professional trustee:

• Will help to manage and mitigate the conflicts of interest that arise, for example, during negotiations over funding or the future of the scheme
• Does not have to demonstrate their independence through their actions as they are, by definition, independent. This often gives them more latitude to be pragmatic during, for example, funding negotiations
• Can replace employer-nominated trustees in corporate projects or discussions where they may be conflicted
• Will be familiar with the sensitivities of The Pensions Regulator, making it less likely that any outcome is rejected
• Can act as a ‘buffer’ between the employer and the other trustees
• Can improve the efficiency of a trustee board – for example, by having expert-to-expert discussions with scheme advisers, focusing on best use of limited trustee time and resource, and managing adherence to agendas and key priorities.
• Can assist co-trustees in acquiring and maintaining the knowledge and understanding requirements of the Pensions Act 2004
• Will provide added reassurance to the scheme’s members, and practical experience and technical knowledge
• Will ensure the most efficient use of the scheme’s advisers, focusing their input to achieve value for money and best advice
• Can provide continuity of governance
• Where appointed as sole trustee, remove the need to appoint member-nominated trustees.

If appointed to your scheme, we will:

• Assume as much of the governance workload as required
• Bring extensive expertise and experience to the trustee board
• Facilitate a positive working relationship between the trustees and the sponsor
• Constructively engage and challenge the scheme’s advisers
• Enhance decision making, budgeting and time trustee board time management.