Trust Deed & Rules definition

View the related practice notes about Trust Deed & Rules

Balance of powers between the trustees and the sponsoring employer

THIS PRACTICE NOTE APPLIES TO TRUST-BASED DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMESWhat is the balance of powers?In the context of a trust-based occupational pension scheme, the balance of powers is the term used to describe how the powers in the scheme's trust deed and rules are distributed between the trustees and the sponsoring employer.Powers may be held:•by the sponsoring employer alone•by the trustees alone•by the sponsoring employer and the trustees jointly•by a third party (eg the scheme actuary)Powers may also require agreement or consultation with another party.The balance of powers is usually determined by the sponsoring employer when the scheme is established and the trust deed and rules are drafted. Changes made to the trust deed and rules while the scheme is ongoing may alter the balance of powers between the trustees and the sponsoring employer. The balance of powers varies from scheme to scheme and some powers are more important than others. Powers which affect the costs of the scheme to the sponsoring employer are usually held by, or require...

Appointment, removal and substitution of pension trustees

FORTHCOMING DEVELOPMENT: On 22 November 2023, the Department for Work and Pensions (DWP) and HM Treasury (HMT) published their response to the call for evidence which aims to deepen the evidence base around trustee capability in investment decision-making, supporting the development of government policy options for improving the skills and capability of pension trustees, and removing barriers to trustees’ ability to make effective investment decisions. The government concluded that trustees would benefit from more support, guidance and training, and that training and knowledge may be less consistent among lay trustees. The government additionally stated that continual focus on cost and minimising all risks throughout the pensions industry is a key barrier to achieving better long-term outcomes for pension savers. It recommended that trustees, advisors and employers should be taking action to ensure that they are not focusing on cost at the expense of value.As part of its response, the government has stated that immediate action will be taken to address key concerns in the call for evidence. The DWP will...

View the related News about Trust Deed & Rules

PO determination on early retirement factors and member communications (PO-13624)

Pensions analysis: The Deputy Pensions Ombudsman refused to uphold complaints of maladministration brought against the trustee and administrator of a pension scheme in relation to the application of actuarial reduction factors on early retirement. Wyn Derbyshire of gunnercooke LLP looks at the decision.