Sole corporate trustee
A changing landscape is leading many schemes to reconsider their governance model
Running an occupational pension scheme has always been a complex business, and it is becoming increasingly difficult for companies and trustees to devote time to their schemes.
Many schemes have moved from being a key part of a company’s employee benefit package to legacy liabilities which must be managed. At the same time, it is becoming harder to find employees who are willing to take on the fiduciary responsibility of being a trustee.
As a result, many companies and trustees are looking to outsource the governance of their pension schemes to a sole independent trustee.
Proven track record
We have been acting as sole independent trustee to pension schemes since we were established in 1994. In fact, the majority of our trustee appointments have been as sole trustee. As a result of that experience, all our procedures are designed in a way that allows us to assume full responsibility for running a pension scheme whilst ensuring that stakeholders remain engaged at all times.
Our approach to trusteeship is genuinely team-based and is underpinned by a robust governance structure that provides peer-review of all significant decisions. Stakeholders’ interests are protected by externally audited controls over our decision making processes. Each trustee appointment is led by an experienced Scheme Director who is responsible for the delivery of our services and this person is supported by a dedicated Scheme Manager.
Regular reporting and consultation
We understand that outsourcing the governance of a scheme to a third party is a big step for many companies. That’s why we tailor our approach to the circumstances of each scheme and set up reporting and consultation arrangements to meet all needs.
One of the big problems facing pension schemes in the 21st century is the issue of succession planning for trustees. By identifying this problem at an early stage it is possible to put in place transitional arrangements for the appointment of a sole trustee which allow all parties to become comfortable working with a professional trustee. We have worked successfully with outgoing trustees on a number of schemes in these circumstances.
Relevant case study
Entrust was appointed as sole corporate trustee to this scheme in 2008 and inherited a situation where predecessor trustees had failed to engage meaningfully with the sponsoring employer over a number of years.
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