Why appoint an independent trustee?

Occupational pensions schemes are complex and the duties of pension scheme trustees onerous especially given the requirements of trustees implemented as a result of Pensions Act 2004.

According to the Pensions Regulator Code of Practice 3: Trustee Knowledge and Understanding, trustees are required "to understand the advice they are given by experts so that they can enter into a discussion on that advice and so that they can genuinely reach their own decisions."

In order to achieve this, an individual trustee must be conversant with:

• The trust deed and scheme rules
• The statement of investment principles
• The statement of funding principles
• Any other document recording the policy of the trustees

More generally trustees are required to have knowledge and understanding of the law relating to pensions and trusts, the principles relating to the funding of occupational pension schemes and the investment of the assets.

We believe that the appointment of a professional pension trustee assists the employer and (if applicable) other trustees in meeting these considerable challenges in four key areas:-

• Knowledge
• Experience
• Independence
• Efficiency