Managing Key Person Risk in Pension Scheme Governance: Why Preparedness Matters

Pensions management is changing. The pressures on in-house teams are growing, and with new regulations, increasing workloads, and evolving governance expectations, you’re juggling more than ever.

But let’s pause for a moment – what would happen if a key member of your pensions team wasn’t there tomorrow? Would your scheme run smoothly, or would it struggle to keep up with deadlines, compliance and decision-making?

Key-person risk isn’t just about handling short-term absences – it’s about future-proofing your scheme. When one person holds critical knowledge, the entire operation is vulnerable. And yet, so many schemes only think about this when a crisis hits.

The good news? There are ways to mitigate this risk.

Why This Matters to You

Key-person risk affects every scheme, whether you have a sole pensions manager or a wider team.

Here’s what we’ve seen happen when schemes don’t plan ahead:

• Operations slow down – A missing pensions manager means lost time trying to track down key information.

• Compliance risks increase – Filing reports, responding to regulators and meeting governance standards can become a challenge.

• Trustee decision-making suffers – Without the right support, key strategic discussions get delayed.

• Recruitment pressures rise – Finding a replacement takes time and money, and in the meantime, workloads pile up.

We know these challenges all too well. But they don’t have to be inevitable.

A Smarter Approach: From Reactive to Proactive

Many schemes only address key-person risk when something goes wrong. But the most successful pension teams are thinking ahead, building resilience into their governance strategy before they need it.

That’s where managing key person risk in pension scheme governance becomes critical – it’s not just about responding to emergencies, it’s about embedding stability and strength into your operations from the start.

Here’s how you can do the same:

• Have a continuity plan – Don’t wait until a key person leaves. Identify where your scheme is most at risk now.
• Avoid isolation of team members – Cross train your team members, or have robust process maps in place, to ensure anyone can pick up the reins at a moment’s notice.
• Encourage knowledge sharing – Got someone that is incredible at what they do? Let them share their knowledge, and passion, with the rest of your team.
• Support trustees and employers – In-house teams are critical in providing Trustees with the information they need to make informed decisions, the more stable your pensions management team, the more informed decisions your board can make.
• Bring in flexible support – Instead of struggling through resource gaps, bring in external expertise on a flexible basis to provide seamless coverage.
• Balance in-house and outsourced skills – Consider whether expanding the skillset of you in-house team by blending outsourced resource may be the best solution for your scheme.

How We Can Help

At Dalriada, we’ve stepped in to help many schemes that suddenly found themselves stretched too thin and looking for support, or those that are looking to mitigate future risk.

Here’s what we offer:

• Interim pensions management  – If you’re in a transition period, such as recruiting or have a long-term absence within the team, we can step in to keep things running smoothly.
• Scheme Secretary Support – Ensuring governance frameworks remain strong, minutes are taken, and trustees have everything they need to make informed decisions.
• Long-term governance support – We don’t just fill gaps – we provide continuous support, we help schemes build stronger, more resilient governance.
• Project-based expertise – Need help with compliance, regulatory updates, or governance reviews? We’ve got it covered.
• Mitigating future risk – Having a contract in place with no ongoing fee allowing us to step in at very short notice as and when the team need us, mitigating any future risk.

By thinking ahead, you’re not just preventing problems – you’re unlocking new opportunities for efficiency, compliance, and better decision-making. It’s about future-proofing pension governance with the right people, plans and partnerships in place.

Don’t wait for a crisis to reveal the cracks. Managing key person risk in scheme governance is your opportunity to future-proof your scheme, safeguard decision-making, and create a more resilient operation. Whether you need short-term cover or long-term strategic support, we’re here to help.

Get in touch with the Pensions Management team today to find out how we can support your scheme with expert, flexible management.