Q&As

Can a person who is a director of a company also be a trustee of the company's occupational pension scheme?

read titleRead full title
Published on LexisPSL on 18/11/2013

The following Pensions Q&A provides comprehensive and up to date legal information covering:

  • Can a person who is a director of a company also be a trustee of the company's occupational pension scheme?

Yes, but that person should not put themselves in a position where their duty to act in the best interests of the beneficiaries of the pension scheme conflicts with the duties that they owe to the company. For example, they may be subject to a conflict of interest when negotiating on funding, setting the employer contribution rate, considering a proposal to change the scheme's benefit structure, or carrying out a review of the employer covenant.

If the person makes decisions as a trustee while subject to a conflict of interest that has not been appropriately managed, there is a risk that those decisions may be challenged by pension scheme members or overturned by the courts. It is important that the members of a pension scheme should perceive a conflict or potential conflict as having been properly managed.

For less serious or one-off conflicts, it may be sufficient for the person

Related documents:

Popular documents