Five Years at Dalriada: Reflections on Trusteeship, Governance Trends and the Future of Pensions

Wow – where did those five years go?

Many of you know I joined Dalriada Trustees on the infamous ‘Lockdown Day’- 23rd March 2020. It feels like five minutes rather than five years, but in that time, beyond the countless password resets and my OOO messages updating you on the wonderful trips Mrs. T arranges, a lot has happened.

Here are some notable developments, trends, and events

• The demand for sole trusteeship has increased significantly (sole, not solo). We’ve seen many co-trustee appointments transition through the chair role into sole trusteeship. The efficiencies are now widely recognised and valued, and having former trustees serve as a Pensions Committee continues to be incredibly helpful. This is an area where former Member-nominated trustees (MNTs) have been adding real value.

• Back at the office, there’s been a noticeable rise in demand for pensions management support. What starts as minute-taking or governance oversight quickly develops into full services. Fortunately, we’ve built an outstanding team in this area, led by the fabulous Leanne Coomber.

• Distressed DC schemes needing professional trusteeship are on the rise. Disappointingly, governance in some of these schemes has been lacking. We’ve had to implement governance restructures, workflow improvements, and in some cases, consolidation strategies to secure member benefits. A number of schemes have been successfully rectified—but there’s more to come.

• Member engagement continues to be an interesting space. Despite years of eye-rolling from Mrs. T whenever I answered pension questions in social settings, she recently turned 55 and announced that she could now take her Pension Commencement Lump Sum (PCLS). Turns out she’s been engaged all along!

• Demand for our defined benefit consolidation platform, Dalriada.Together, has grown post-2022’s “Kami-Kwasi” event. With actuarial valuations now resembling accounting exercises, the focus has shifted to the operational efficiency of schemes, whether they’re heading toward buyout or a run-on journey plan. The real priority is ensuring the underlying engine—admin and digitalisation—functions smoothly. This is the immediate future.

• DC consolidation hasn’t ended employers’ due diligence. Instead, we’re seeing two key trends: a rise in Pensions Committee membership and the emergence of a Defined Contribution Master Trust (DCMT) secondary market, which still needs development. Currently, there’s no effective transition framework to access this market, making it a barrier to entry for new schemes.

• On the home front, the battle over Mrs. T’s PCLS ended with me caving—new bathrooms, apparently, were a necessity. The silver lining? I now get to use part of my pension every day!

• One particularly exciting development is Dalriada’s Defined Contribution Consolidator (DCC) It’s tackling inefficient AVC arrangements with poor administration and governance, ensuring value for money (VfM). It’s fantastic to see industry-leading initiatives driving better member outcomes while aligning with expected VfM frameworks and decumulation requirements.

• DB scheme surpluses are creating some interesting trends—particularly in discretionary benefits and using surplus funds for future DC contributions. We’re back to the ’90s with contribution holidays!

• Weddings: Our daughter has finally found a sensible boyfriend—now fiancé. Naturally, another slice of my pension has been allocated. A recent weekend in the Cotswolds scouting venues confirmed that this will indeed be a great way to spend part of my pension—according to Mrs. T, at least.

• ESoG frameworks have revealed some fascinating insights. Key person risks, once just acknowledged, now have solid contingency plans in place. But the new Code’s requirement for the ORA to be “in proportion to the size, nature, and complexity of the scheme” is an interesting one. The Code and PA04 say the ESoG should align with the “Size, Scale, Nature, and Complexity” of scheme activities—yet the Code’s wording suggests the ORA applies differently. A typo in the Code, perhaps?

• On a personal note, I became a grandad just before Christmas 2022. A recent grandad-sitting evening involved building CampTV out of chairs and an old duvet cover, piling on snacks and pillows, and watching Madagascar, Lego Superheroes, The Smurfs, and Kung Fu Panda. Plenty of fun!

And that’s all without mentioning LDI, Productive Finance, Dashboards, Data Digitisation, and the new Funding Code…

Change isn’t constant – the speed of change is accelerating. The next five years will be shaped by AI and other advancements. But it’s not about increasing the input – it’s about improving the outcomes.