Skip to main content

Governance and Oversight

There is an increased need for good governance and oversight from the trustees of occupational pension schemes following the requirements of the IORP II Directive and the provisions of the Pensions Authority’s Code of Practice. We have a comprehensive range of services in this area, including:

Pensions Oversight Committee

Where an employer has recently transitioned their company pension scheme to a Master Trust, we see the importance of employers establishing an independent oversight committee to ensure good governance. We can assist employers with this in helping them establish the committee and then using our experience as pension trustee professionals to lead and support the oversight committee in achieving its aims. The committee could be comprised of members of the scheme and employer representatives.

The key focus areas of such a committee should be ensuring value for money, addressing any potential conflicts of interest, overseeing administration and investment performance, reviewing the default fund and ESG policies, and having good oversight of communications and the member engagement program of the Master Trust. This may involve providing challenge to the trustees of the Master Trust or making recommendations for change where expected standards are not being met.

Trustee appointments to Master Trusts

We have highly experienced pension trustee professionals who are available for professional trustee appointments to Master Trusts.

Critical Reviews

The trustees of occupational pension schemes must carry out a critical review of the administration services and separately the investment services to the scheme every 3 years. The first deadline date for completion of the critical reviews was 21 April 2024. Trustee Decisions can add value by completing the reviews for Trustee Boards by ensuring a truly independent approach to our review work.

Independent annual compliance review

The Pensions Authority’s Code of Practice is wide ranging and trustees need to ensure full compliance with the code and complete an Annual Compliance Statement. We can assist Trustee Boards by completing an independent annual compliance review and report our results to the Trustee Board giving them reassurance that they are meeting their requirements under the Code as well as the provisions of the Pensions Act 1990 (as amended) in general.

Internal Audit Key Function Holder Services

The trustees of all occupational pension schemes must appoint an Internal Audit Key Function Holder (KFH) to their scheme. The Internal Audit KFH will assist the trustees with the monitoring and review of internal controls they have in place. Trustee Decisions have professionals available who are qualified to complete this important function.