Trustees 'overburdened' and slow to implement decisions
Trustees feel overloaded and need better support to make more timely decisions, research from Aon Hewitt has revealed.
In Time to focus on getting things done, published 11 August, the consultancy states nearly 70% of 250 respondents said the implementation of their decisions can sometimes take months.
Around half of respondents added the same issues were often discussed across multiple meetings, due to agendas being too packed at previous meetings, or because new information had to be considered.
Some 60% believed they rarely have enough time to consider new financial opportunities, such as short-term buyout prices.
More than 40% said they were unlikely to know if the buyout market became 10% cheaper within two days.
The research is based on self-assessment statements completed by 250 trustees and managers across Aon Hewitt's conferences and events last year.
Partner Paul McGlone said the research meant trustees were exposed to risks for longer than necessary.
"In an environment where opportunities can be transient - particularly in the investment and risk settlement markets - delays and indecision can lead to missed opportunities.
"This can result in an increase in the journey time to full funding and the risks that schemes continue to face along the way. Inefficiency increases the chance these opportunities are missed."
The paper also noted less than a third of respondents had business plans based on SMART (specific, measurable, achievable, realistic, and time-bound) objectives, while also lacking a strategic focus for their schemes.
The consultancy recommended schemes reorganise in order to allow the right trustees to make decisions in a timelier manner, while ensuring they receive better advice and information.
McGlone added: "For many schemes, the need for change in how they operate is already recognised, and making changes to their governance and decision-making processes now, could have a real and long-lasting impact on the issues that their scheme is facing."
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