Five tips for any new pension scheme trustee

Read the trust deed and rules

This one appears rather straightforward, not to mention dry, but is crucial to any trustee's role. Safeguarding and enforcing these rules are the substance of trusteeship.

Barry Parr, founding co-chair of the Association of Member Nominated Trustees, suggested a new trustee could ask someone to help them get through.

"Seek to understand the scheme-specific elements – especially regarding the balance of powers. This will guide what you can do and not do and where you must agree with the sponsor."

Get yourself trained

Scheme representatives are required to obtain a level of trustee knowledge and understanding appropriate to their role, and to understand the basic requirements of their scheme.

Frances Corbett, educational development manager at the National Association of Pension Funds, said member-nominated and employer-nominated trustees "are not expected to be experts", but skills development is essential.

She said: "Appropriate training is a must to achieve this and involves new trustees looking out for training that has a practical application and helps them provide good outcomes for scheme members – for example, the NAPF’s introductory courses for trustees and the Pensions Regulator’s toolkit."

Janice Turner, founding co-chair of the AMNT, said it was important new trustees were given time to complete the toolkit.

"Your employer should allow you two weeks in total to get through the entire toolkit with proper understanding," she said. "It doesn’t have to be one solid two-week block, you could have an afternoon a week until it’s completed."

Use your advisers

Trustees have pensions experts that work for them and are there to answer their questions – albeit at a cost. Parr encouraged new trustees to engage with their advisers early on, and discover who are the most useful personnel at the scheme:

"Seek for one-to-ones with the advisers and ask them what significant impacts they have each had in the last year or so – you will learn a lot and quickly grasp which advisers are on the ball." Decision-making is the principal role of the trustees, but this question of whether there is power to make decisions is crucial.

Corbett called on schemes to take the following actions:

• Make sure there is the power to take the decision.
• Check whether advice is required.
• Make sure a decision is actually taken.
• Keep good records of decisions made.

Understand your scheme membership

Scheme members will be split into separate, changing groups – from active paying-in members to deferred former employee members not yet drawing a pension, and of course pensioners.

This presents an array of challenges – from communication, in terms of how to engage the various groups, to investment, in terms of designing a strategy that will cater to the entire scheme.

Parr said: "Try to really understand the member profiles – ages, contributions, pot sizes etc and the split between actives, deferreds and pensioners if appropriate – to give a basis for future decision-making and to appreciate the admin capabilities." 

Learn from your peers

The pensions industry makes use of a number of different digital media, such as LinkedIn and Twitter, and peer networking, through a roster of conferences and other events where scheme representatives can exchange thoughts and ideas.

Other case studies on a trustee's new scheme – or the similar one down the road – can be found in the media. The AMNT's Parr suggested a source closer to home: the person a new pension scheme trustee is taking over from. "If possible seek to have a chat with the trustee you may be replacing – you may learn a lot".

The trustee chair should be able to brief newly elected members on the main issues facing the scheme, said Turner, adding: "We know that some people have quite a lot of advance notice that they are to become a trustee.

"If you are one of them, ask to shadow one of the existing trustees so that you can get a better idea of what the role entails."