UK - The Institute of Chartered Accountants of Scotland (ICAS) has issued guidance to help trustees in their decision-making, spurred on by recent legislative changes.
ICAS said the reason they issued the guidance was to help trustees manage schemes effectively for the benefit of the pension scheme members.
According to ICAS, recent governance changes in accounting standards had resulted in significant changes to valuation methods and possibly made it difficult for trustees to keep up to date.
It said in some pension funds new and less experienced trustees had taken over the responsibility for very large portfolios as governance best practice had led to senior company personnel being removed from pension trustee boards.
Commenting on the issue, Alan Thomson, chairman of the Institute’s Pensions Working Party, said: “Pension trustees are expected to perform a critical role in the stewardship and management of billions of pounds worth of pension funds. Their decisions can affect the retirement of millions of people, so trustees need help. Regardless of the experience of trustees, people saving for retirement have a right to expect their scheme to be well managed.”
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