Why use an independent trustee

We find that our clients have a wide range of reasons for appointing an independent trustee to their scheme, such as:

Experience

An employer may not have any pensions or trustee experience in-house.  Given the increasing legislative and regulatory requirements, it makes sense to appoint a professional expert.

Such training is costly in both time (training time) and money (financial outlay and loss of earning). It is generally more economical to use a professional trustee.

Minimise cost

Trustee training was made obligatory in the Finance Act 2008. All trustees, and where a company is appointed, all company directors must be trained within six months of appointment and every two years after that. 

Such training is costly in both time (training time) and money (financial outlay and loss of earnings). It is generally more economical to use a professional trustee.

Minimise liability

Trusteeship is not always covered by standard Directors and Officers Insurance and the cost of separate trustee liability insurance can be substantial.

The introduction of ‘on-the-spot fines’ increases the Pensions Board's power to impose a €2,000 fine on each trustee for any breach of the Pensions Act.  Such a fine cannot be paid out of the scheme but must be paid by the trustee personally.

Transparency

Using a professional independent trustee ensures that the operation of a scheme is transparent. It also raises confidence of employees in the scheme and is good for public relations.

Autonomy

Potential conflicts of interest may arise in a scheme. For example, where a director is appointed as a trustee of the company's group retirement plan, in this dual role, different interests are being protected. The first being, the employer’s interest (from a directors perspective). The second, from the members interest (from a trustees perspective).  By appointing an independent trustee you can avoid this conflict.  The director could also be a scheme member and have a third interest in the scheme.

Peace of mind

Members may wish to protect their interest and, where possible, may deem it necessary to appoint a member trustee. The process of appointing a member trustee can be logistically and administratively challenging.  Overall, the appointment of an independent trustee will give members peace of mind.

Why appoint Independent Trustee?

Our clients choose us because:

• We have extensive experience in pension-scheme trusteeship and management.
• We are a truly independent trustee with no affiliation to any service providers.
• We provide regular updates on legislation and regulations affecting a scheme and its members.
• We can act as an independent party to manage any conflicts of interests, disputes or formal complaints in a constructive way.
• We take a very hands-on approach and can efficiently manage the professional relationships of the scheme, involving actuaries, administrators, investment managers benefit consultants etc.
• Where necessary, we liaise with the Pensions Board, Pensions Ombudsman or Revenue Commissioners.