UK - A pensions ombudsman decision that requires trustees to justify their actions to members is another financial burden for schemes, a professional trustee says.
Trustee firm Law Debenture believes the determination between the TKM Group Pension Scheme and one of its scheme members will lead to more trustees seeking legal services for drafting their minutes.
Law Debenture director Mark Ashworth said: “If trustees have to set out their reasonings to members and any defect in drafting may be used against them, they may be driven to ask lawyers to draft the records of their decisions. This will take time and money.”
Ashworth added that David Laverick’s determination had raised the need for clarification on the reasons behind trust laws which state that trustees need not supply copies of their minutes.
Ashworth also felt that requiring trustees to draft a legal document for each decision could damage the overall role of trustees.
The Pensions Regulator (TPR) is seeking "improved" powers to set a schedule of contributions in defined benefit (DB) schemes in the government's upcoming white paper, it has revealed.
New regulatory rules which require providers and advisers to produce annuity illustrations will not solve the problem of consumer detriment as they are "fundamentally" flawed, according to Retirement Advantage.
Paul Budgen is set to join financial technology and auto-enrolment (AE) firm Smart Pension as director of business development.
This week's edition of Professional Pensions is out now