Investing scheme assets is a key responsibility for trustees of occupational pension schemes in order to ensure that:
in the case of a defined benefit (DB) scheme, they can pay benefits to beneficiaries as they fall due
in the case of a defined contribution (DC) scheme, members have a pension pot which they can use for their retirement
Trustees have a wide statutory power to invest scheme assets under section 34(1) of the Pensions Act 1995 (PA 1995). The trust deed and rules of a scheme usually also confer on trustees a power to invest the scheme assets. Trustees should also ensure that they invest scheme assets in accordance with the scheme's investment power, which may be more restrictive than the statutory power to invest.
Since most trustee boards will not include individuals who are qualified and authorised to manage investments under the Financial Services and Markets Act 2000 (FSMA 2000), trustees commonly delegate their powers to make day-to-day investment decisions to a professional fund manager, as permitted by statute (PA 1995, s 34(2)).
Trustees'...
To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.
**Trials are provided to all LexisNexis content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisNexis services please email customer service via our online form. Free trials are only available to individuals based in the UK, Ireland and selected UK overseas territories and Caribbean countries. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
The Pensions Regulator (TPR) has published a regulatory intervention report under section 89 of the Pensions Act 2004 concerning two defined benefit...
The Pensions Regulator (TPR) has published guidance for trustees and scheme managers on artificial intelligence (AI) in pension schemes. It explains...
This week's edition of Pensions weekly highlights includes a review of key news stories, as well as dates for your diary and trackers....
In the Autumn Budget 2026, delivered on 28 October 2026, the Chancellor of the Exchequer, John Healey MP, announced: (i) the ‘adjusted triple lock’...
What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a
If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal fees, will that count as a PET against their estate?A disclaimer is the refusal of a gift prior to acceptance. The refusal of the gift must take place before the beneficiary accepts any benefit
Can shares in a limited company that have not been paid-up at all be cancelled?A limited company having a share capital may not alter that share capital, except in the ways listed in section 617 of the Companies Act 2006 (CA 2006). Shares in a company cannot simply be cancelled without following an
Glossary—Latin legal termsDespite attempts in recent years to simplify the language used in legal cases, there are still a number of Latin phrases commonly used in personal injury claims. The following Latin phrases are listed in alphabetical order:Latin termDefinitionMeaningActa iure imperiiLegal
0330 161 1234