OPDU Report 25 - November 2008

Bulletin Board
Some key issues for trustees

There is no shortage of issues for trustees to consider at the moment. The following provides a flavour of some of the key ones:

Governance (1)
(Independence)
With increasing complexity and company directors concerned about potential conflicts of interest, the number of schemes that now have an independent trustee has increased significantly. (Anthony Arter).

Governance (2)
(Covenant)
Challenging financial conditions make the assessment of the strength of the employer’s covenant for defined benefit schemes even more important and potentially more difficult. (David Poynton).

Governance (3)
(Knowledge)
The Pensions Regulator issues its formal consultation on refreshed versions of its Trustee Knowledge and Understanding code of practice and scope guidance.

Governance (4)
(Effectiveness)
Company boards have been reviewing their performance for years, so shouldn’t trustee boards? (Avgi Gregory).

Governance (5)
(Record Keeping)
Following the Pension Regulator’s consultation document, data and record keeping is likely to have a higher profile than before.

Transfer Values (1)
(Protected Rights)
Flexibility to transfer protected rights into self invested personal pension
plans also presents the potential for another mis-selling scandal. (Malcolm McLean).

Transfer Values (2)
(Underfunded schemes)
Flagged last time, from 1 October 2008 trustees took on responsibility for setting a scheme’s transfer values. If their scheme is currently underfunded should transfer values be reduced to reflect this?

Investment Markets
Which way now? And what does it all mean? (Madoc Batcup)

Pension Surpluses
No really. Charles Cowling from Pension Capital Strategies explains why this is an issue for companies and therefore why trustees need to understand the issues. (Charles Cowling.)

New Powers for the Pensions Regulator
An amendment to the Pensions Bill enhances the Pension Regulator’s ability to issue contribution notices and financial support directions

Myners’ Principles
No really. Charles Cowling from Pension Capital Strategies explains why this is an issue for companies and therefore why trustees need to understand the issues. (Charles Cowling.)

Personal Accounts
Slowly but surely Personal Accounts are taking shape. What will it mean for current occupational schemes? Is your scheme likely to qualify for the NAPF Pension Quality Mark award scheme?

And Finally
Member communication, the next round of funding valuations, default funds, auto enrolment, buyouts/buyins…

A busy time ahead..