The benefits of appointing an independent trustee have become much more evident over recent years as pensions legislation has become increasingly complex and the role of the pension scheme trustee ever more onerous.
More and more companies are appointing independent trustees as additional trustees to sit alongside the existing trustee board or to act as a sole trustee.
Trustees, in addition to looking after the interests of all scheme members, now have to be able to demonstrate that they are keeping fully up to date with all pensions issues and have an appropriate level of knowledge and understanding to effectively carry out the trustee role.
Given the increased responsibility, the time commitment required and the personal liability associated with acting as a trustee it is hardly surprising that many individuals no longer wish to perform the role.
A professional trustee can either work as an additional trustee supporting an existing trustee board or perform the role of a sole trustee, and each route has advantages and disadvantages.
If an independent trustee is appointed to sit alongside the trustee board, this will result in an increased level of knowledge and understanding of the issues facing the trustees, however the existing trustees will still have all the same duties and obligations, and carry the same risk.
If an independent trustee is appointed as sole trustee, then the independent trustee will solely be responsible for members benefits and for complying with ever changing legislation.
The attractions of appointing a professional trustee to support an existing trustee board are as follows: