Source · Select Committees · Work and Pensions Committee
Recommendation 14
14
Acknowledged
Set out plans to ensure every trustee board has at least one accredited member
Recommendation
Member-nominated trustees play a vital role in representing the interests of scheme members and providing a link to the workforce. As part of its planned engagement with stakeholders, DWP should explore ways to support lay trustees with the time and costs needed to become accredited and report the results. It should set out plans for ensuring every trustee board has at least one accredited member, lay or professional and a timetable for achieving that. (Paragraph 109) Defined benefit pension schemes 57
Government Response Summary
The government committed to planning a consultation later this year to consider how TPR and DWP could provide additional support for lay trustees, but did not set out plans for ensuring every trustee board has an accredited member or a timetable.
Government Response
Acknowledged
HM Government
Acknowledged
The Government appreciates the time and commitment member-nominated trustees devote to the pension schemes they are involved with. Many of the 2023 call for evidence responses noted the positive contributions lay trustees make to scheme governance. They offer a different viewpoint in decision making and are able to reflect the voice of scheme members to the rest of the trustee board. We have heard the challenges that closed schemes can sometimes face in recruiting member-nominated trustees where fewer members are part of the current workforce. The responses also suggested that the overall effectiveness of scheme governance is not dependent on individual knowledge, but rather on having a diverse board with a range of skills, experience, and expertise. Such diversity can often be provided through lay trustees. We know from the call for evidence that the support lay trustees receive often depends on their scheme sponsor. Some receive extensive support in the form of access to qualifications, ongoing trustee education and sufficient time away from their everyday role to maintain and develop their skills as trustees. Those lay trustees who are unable to meet the required standard are usually poorly supported by the scheme sponsor. It was also suggested that small schemes governed only by lay trustees may be less likely to meet the requirements expected of them and may require more support to fulfil their obligations. We are planning to consult on measures to improve governance of trust- based schemes later this year. This consultation will consider how TPR and DWP could provide additional support for those lay trustees who require it.