Fifty-nine per cent of UK schemes, an increase of 12% on 2007, were paying at
least one trustee signalling a shift in sentiment towards proving that
trustees are independent.
added that it was still unusual for more than one to receive compensation for
their efforts, though. Schemes managing £250m or more in assets were more likely
to pay trustees. Mercer also found there had been an 11% increase in 2008 of
pension schemes remunerating trustees “because they demanded it”, compared with
28% paying them in order to recruit and retain them, or in some cases to bring
in someone with specific expertise.
One-third of schemes reported difficulty attracting individuals to their
scheme as trustees.
Mercer thought this due to a perception that the role is too time-consuming
and difficult with 65% of respondents citing this as the reason, followed by
fear of personal liability with 13% of the vote.
“Numerous issues are pushing the industry towards independent trusteeship.
Schemes are recognising that trustees should regard themselves as directors of
multi-million pound businesses,” says Rachel Brougham, Mercer’s governance team
principal. “The thorny issue of remuneration remains: it may be that trustees
are becoming more demanding as their role becomes tougher.”
The survey also found that while 45% of pension schemes in the UK provided
their trustees with job descriptions, 71% had no such guidance for their chair
of trustees despite an increase legislative, regulatory and economic pressures
on the operation of schemes that a written job description could help them
navigate more effectively.
Industrial group continues acquisition spree and secures 740 jobs
Lenders Praetura Asset Finance has reported double digit growth for 2016
Messenger start-up Snap, owner of Snapchat, has said it will set up its non-US headquarters in London
Business lender Reparo Finance has secured a new multi million pound backing deal