HamishWilson, the specialist pensions adviser, today said that challenging economicconditions, improving longevity and onerous legislation has actually led to the birth of anew super-breed of Trustee.
The pensions landscape has evolved almost unrecognisably over recent years due tovolatile equity markets, falling yields and longevity improving at an accelerated rate,creating significant new challenges for trustees. Not to mention the raft of legislationaffecting trustees, such as the 2004 Pensions Act, requiring trustees to agree all aspectsof funding with valuations on prudent assumptions; legislation imposing knowledge andunderstanding (TKU) requirements on trustees; together with a new pro-active PensionsRegulator baring its teeth.
It is reasonable to imagine that these factors could discourage potentially good trusteesfrom putting themselves forward. However, according to HamishWilson, this process ofsurvival of the fittest has produced a new, more dynamic type of trustee, who isstronger, more resilient and self-confident than his colleagues of yesterday.
John Branford, partner at HamishWilson, said: “Some trustees have left trustee boardsbecause they have found the new requirements too taxing or they recognised that theircompany role left them too conflicted to continue. Some boards strengthened themselvesby introducing professional (independent) trustees.”
Branford continued: “Now that we are well into the second round of scheme specificvaluations, however, those who remain are relishing the experience. No longer afraid toexpress themselves in front of the actuarial wizard and his black box or to bow before thecompany they are grappling with a complex but rewarding set of issues, which have realworld relevance for the prosperity of both their members and scheme sponsors.”
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