UK - The Treasury is considering measures beyond professional qualifications for lay trustees in a bid to boost their investment expertise Professional Pensions has learned.
The explanatory notes to the Pensions Bill state that the new regulator will issue a code of practice giving details of the “knowledge, training, experience or qualifications” required of lay trustees to carry out their role.
According to briefing notes sent by the Treasury to senior industry figures who attended yesterday’s talks on scheme compliance with principles set out in the Myners Report, this does not go far enough to boost trustees’ investment expertise. The meeting focused on trustees’ expertise and their relationships with investment consultants.
The heads of Watson Wyatt, Mercer Investment Consulting, Hewitt Bacon & Woodrow – as well as representatives of the BT Pension Scheme, the Universities Superannuation Scheme and the National Association of Pension Funds – are believed to all have attended.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.