Since its formation in April 2005 the Pensions Regulator has encouraged trustees to improve the operational and management standards in pension schemes for which they are responsible. Core to this are the requirements for trustees to have appropriate "Trustee Knowledge and Understanding...TKU"
Trustee Knowledge and Understanding
The TKU requirements are set out in the Pensions Regulator's relevant Code of Practice. The requirements were reviewed in 2009 resulting in the publication of a strengthened Code in November 2009.
The Pensions Regulator requires Trustees to have knowledge and understanding of the law relating to pensions and trusts and the principles of funding and investment. In addition, they are required to have a working knowledge of their scheme's trust deed and rules, statements of investment and funding principles and other relevant scheme documents.
It is now more than ever essential for Trustees to have the appropriate skills needed to ensure the proper fulfilment of their duties. Over the years, legislation has placed additional responsibilities and powers on Trustees and onerous sanctions can be imposed on Trustees falling foul of these requirements. There is no sign of this abating and the importance of appropriate training continues to grow.
Wedlake Bell's bespoke training offering
The Pensions Regulator has made it clear that training is no longer optional. Wedlake Bell's pensions team offers bespoke, training solutions tailored to the needs and intricacies of your specific Scheme. Our training can take the form of an interactive workshop involving the entire Trustee board to one to one training for new Trustees. Our approach is to provide legal training solutions unique to your Scheme which enable Trustees to carry out their Scheme duties with sufficient knowledge and with confidence.
Topics we can include:
- Trustee Fundamentals – legal background to trusts, duties, responsibilities, powers and Trustee protection;
- Scheme Funding – legal framework, negotiation and innovative funding solutions;
- Corporate events – effects on the Scheme and putting in place contingency plans;
- Pensions Taxation – navigating the legislative maze; and
- Conflicts of Interest – efficient management and identification.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
