What are the responsibilities of an occupational pension scheme trustee?
A trustee can be a person or a company who holds the assets of the pension scheme for its beneficiaries. The scheme assets are often held in a trust to keep them separate from the employer’s assets and so the scheme can benefit from particular tax reliefs.
Pension scheme trustees play an important role in making sure that the scheme is run honestly, efficiently and in the best interests of its members.
If you have been invited to be a pension trustee, you should fully understand the commitment you are making before you agree to take on the role. If something goes wrong with the pension scheme, trustees may be held personally liable for any loss caused.
Trustees are expected to organise the training that they need to meet their responsibilities and keep their knowledge up to date. You will be expected to understand the law relating to pensions and trusts, scheme funding and investment of the assets of schemes, amongst other legal requirements. You will also need a good understanding of certain pension scheme documents including the trust deed and rules, the statement of investment principles and the statement of funding principles.
Trustees have a number of specific duties, including making sure that:
Contributions are paid by the employer at the right level and right time.
Benefits are paid to the relevant scheme members on time.
Accounting records are full and accurate, including written records of trustees’ meetings.
An annual report is available within seven months of the scheme year end.
An auditor’s statement is obtained which confirms the details of the payment of contributions into the scheme.
Scheme accounts are audited, if required.
Pension funds are invested within the bounds of the relevant law and the scheme’s investment principles.
Professional advisers are appointed as needed. Pension schemes can be complicated to run and trustees will require specialist advice to help them to make decisions on behalf of the members.
Members are provided with information on the scheme and on their own benefits.
The Pension Regulator (TPR) is provided with the legally required information for their register, an annual return for the scheme and its annual levy.
We help pension trustees to meet their obligations by advising on the accounting and audit requirements of their scheme, and by providing independent audits.
Do you still have questions? Get in touch with our pension scheme team to find out more about how they can help you.
