The Pensions Regulator in the U.K. is seeking industry input on professional trusteeship in an effort to reduce the number of poorly governed pension plans, TPR said Tuesday.
To help plan participants enroll in well-run plans that deliver good value, TPR wants to improve plan trustees' knowledge and understanding as well as encourage trustee diversity on boards.
Through the consultation, the regulator is asking the industry:
- Whether there should there be an accredited professional trustee on every board.
- Whether a sole trustee on a pension fund board is able to run a plan appropriately.
- How can barriers to consolidation be removed.
David Fairs, executive director of regulatory policy, analysis and advice at TPR, warned in a news release Tuesday that there still are disengaged trustees who either refuse or are unable to improve standards in their plans.
"The trustee model isn't broken, but it does need to be greatly improved. There is stark evidence that the current system doesn't work for all, and there is a clear disparity between the experience of savers in well-run and badly run schemes. If trustees cannot meet the standards we expect, we believe they should wind up and consolidate savers into a better run scheme," Mr. Fairs said the news release.
The consultation will be open until Sept. 24.