The campaign, called 21st Century Trusteeship – raising the standards of governance, is part of TPR’s commitment to support schemes by being clearer and more directive. It outlines how people involved in running schemes can take action to meet expected standards and what action TPR will take if they don’t improve.
Recent research by TPR has shown that while some trustees are doing a good job, many trustee boards, particularly in small and medium schemes, have failed to act on TPR’s codes and guidance to meet standards of good governance.
As part of the campaign, targeted emails will direct trustees, scheme managers, employers and advisers to specific and relevant content that sets out clear standards that TPR expects schemes to meet:
trustees and advisers: good governance
employers: work with your pension trustees
public service: importance of good governance
They will also be signposted to supporting resources, including guidance within TPR’s codes of practice and practical tools to help trustees raise the standards of governance in their schemes.
The campaign will focus initially on emphasising the fundamental importance of good governance. As it progresses in the coming months, extra content will be added to the website, covering key governance themes including:
clear roles and responsibilities
clear purpose and strategy
competence and integrity
upskilling and training
managing advisers and providers
managing conflicts of interest
managing risk
meetings and decision-making
value for members
Anthony Raymond, Acting Executive Director for Regulatory Policy at TPR, said: “Good governance is the bedrock of a well-run pension scheme and there is a clear link between good governance and good fund performance. It is not a 'nice to have' but an essential part of effective scheme management – for all schemes.
“Pension schemes should have a skilled and engaged board, led by an effective chair, have robust risk management in place and good relationships with advisers and third parties.
“We have set out our intention to be clearer, quicker and tougher. This campaign is one of the ways we are delivering this commitment and I would like to see all trustees visit the new campaign web page to ensure they are doing all they can to safeguard their members’ benefits.
“We are now communicating our expectations more clearly to trustees. Those who fail to respond to our more directive approach may face further regulatory action.”
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