The opdu Report - Issue 14, May 2003

Bulletin Board
Annual Meeting - Chairman's Review
Alan Herbert

The following is the text of the report by given by the chairman at our Annual Meeting last November:

In April opdu celebrated its fifth birthday. Although it can still be regarded very much as an infant, alongside the Napf which helped bring it into the world and which will be celebrating its 80th birthday in 2003, I am pleased to report this infant is growing and making its own mark in the pensions world as a healthy five-year-old. It has established its credentials with the representative and regulatory bodies of the occupational pensions movement.

The membership of opdu now totals over 80 with approaching another 30 schemes in discussion about becoming members. opdu was launched in April 1997 to give support and protection to those faced with running occupational pension schemes in the new statutory environment introduced by the Pensions Act. Five years later trustees of occupational pension schemes find themselves operating in a very difficult climate with many other challenges now facing them which if not handled in an appropriate way can lead to potential disputes and claims.

During the year opdu has been pleased to lend support to the Raising Administration Standards initiative by giving publicity to it when speaking at events attended by pension professionals. It is very much in line with opdu's objectives of assisting in the raising of standards in running pension schemes and managing the risk associated with them. In June I spoke at the Edis Partnership's clients' conference in Bristol and in October at The Pension Show in London on the topic of standards in pensions administration. Jonathan Bull also spoke at the Pensions Show on Minimising Risk, Liability Protection and Claims. I also spoke at the PMI Autumn Conference on the importance of communication in giving re-assurance to all categories of members and managing the reputation of pension schemes by good communication.

It has been disappointing to see that for the second year running the Chief Executive of Opas has had cause to draw attention to poor standards in administration being one of the main reasons for complaints that Opas has to deal with. It is hoped that after the Raising Administration Standards Group (see article by Jocelyn Blackwell page 15) has reported in the first quarter of 2003 it will lead to an improvement in the situation.

In addition to the speaking engagements at The Pension Show opdu continued to raise its profile by having a stand there and also at the exhibition at the Napf Annual Conference in Brighton.

opdu has been pleased to continue its sponsorship of Trustee Excellence in the Pensions Management Awards 2002 which was won by one of its members, the Superannuation Arrangements of the University of London, for the second consecutive year. Other successes for opdu members included: Graham Brown of Barnardo's for Pension Manager of the Year, Philips Electronics for Defined Contribution Scheme and Railways Pensions Management for the Industrywide Scheme. Congratulations to all those concerned.

During the year opdu participated in the Group, under the chairmanship of Brian Holden of Co-operative Insurance Society Ltd, which developed and launched The Trustee Code of Practice. It is envisaged that the Working Group will be asked to consider other issues relating to trusteeship.

Whilst it is not opdu's role to become involved in the debate on the move by employers from defined benefits to defined contribution schemes it does have an interest in seeing that appropriate procedures are followed supported by good communication so that the potential for disputes is reduced. It is taking a close interest in how cases of schemes being discontinued are handled when the expectations of members are not being met which is leading to disputes and damage to the reputation of occupational pension schemes in general.

opdu supports the simplification of pensions legislation and awaits with anticipation as I guess we all do the publication of the Government's Green Paper. However, this evening we shall look forward to hearing the Opposition's views on the issues currently facing pension schemes and its plans for encouraging saving for retirement.