Investment powers and duties of pension trustees
Investment powers and duties of pension trustees

The following Pensions guidance note provides comprehensive and up to date legal information covering:

  • Investment powers and duties of pension trustees
  • Trustee investment powers
  • Trustee investment duties
  • Duty to comply with the trust deed and rules
  • Common law investment duties
  • Duties relating to asset allocation
  • Duty to have and maintain a statement of investment principles (SIP)
  • Duty to take investment advice
  • Appointing professional fund managers
  • Appointing investment consultants and fiduciary managers
  • more

FORTHCOMING DEVELOPMENT 1: The March 2018 White Paper ‘Protecting Defined Benefit Pension Schemes—A Stronger Pensions Regulator’ identified concerns about a lack of accountability and clarity on what a good DB funding strategy is, thereby resulting in poor scheme funding and investment decision-making sometimes focused on the short term. The government therefore expressed the intention to legislate so as to require DB trustee boards to appoint a chair and for that chair to report on key scheme funding decisions to the Pensions Regulator (TPR). After a first failed attempt to legislate on these measures (through the Pension Schemes Bill 2019), the Pension Schemes Bill 2020 was reintroduced in Parliament on 7 January 2020. This 2020 Bill (which differs from its 2019 predecessor only in minor ways) will require DB trustees to have a ‘funding and investment strategy’ for the purpose of ensuring scheme benefits can be paid over the long term. That strategy is to be set out in a ‘statement of strategy’ signed by the chair, which will cover other matters including the trustees’ assessment of whether the funding and investment strategy is being successfully implemented, or any remedial action they intend to take to get the strategy back on course. For more information on the detail of the