Occupational pension schemes run by amateur trustees could become a thing of the past, delegates heard.
Hewitt Associates UK lead global risk services Kevin Wesbroom said the prediction made by Alan Pickering in his eponymous industry review – that the days of lay trustees are over – was “probably right”.
He said the governance pressures placed on lay trustees were growing every day and it was essential proper structures were in place to ensure schemes are run correctly.
He added for trustees to run a scheme well proper structures must be in place and the board must have “clarity of objectives”.
Wesbroom told delegates trustees face a war on two fronts – velocity and volume.
He explained: “We are in the next generation of governance. Trustees have to get structures and processes in place which will deal with increased velocity and volume of governance.”
Wesbroom said trustees must ask themselves if there is sufficient knowledge and skill on the trustee board and weigh up what action to take if they come up short.
He said it would be a choice between education of the trustees or bring in an independent trustee as an alternative.
