The Pensions Regulator

Regulator recognises importance of trustee role and offers support and guidance

Ref: PN05-26
20 September 2005

Speaking today at an Outer Temple Chambers Conference the Pensions Regulator's chief executive Tony Hobman said trustees would need to raise their game to meet new requirements, and would be supported in doing so by the regulator.

Addressing an audience of trustees, fund managers, lawyers, actuaries and advisers at the London event entitled "Duties, Threats and Opportunities: The Brave New World for Pension Trustees", he outlined the positive action trustees can take to minimise the risks faced by pension schemes.

Tony Hobman said the Pensions Regulator was under no illusions as to the challenges lay and professional trustees would face as the new regulatory regime started to bite, but in their important role trustees needed to act in order to conform with changes set out in the Pensions Act 2004.

"Trustees must take responsibility for the scheme's approach to funding issues and must be prepared to negotiate robustly with the employer over reaching a mutually acceptable way forward."

He stressed that trustees would be supported by measures being introduced by the regulator, adding:

"We have developed a code of practice on trustee knowledge and understanding; and, partly as a result of feedback during the process of developing the code, we are embarking on the development of a programme of e-learning for trustees."

The first tranche of the Pensions Regulator's free e-learning programme will be available in January 2006 and will cover units one and two of the syllabus: the responsibility of trustees in relation to trust law and pensions law. The remainder will be delivered later in 2006.

Trustees can express their interest in the programme and receive occasional updates by signing up at www.thepensionsregulator.gov.uk.

For further information on e-learning visit the Pensions Regulator's website www.thepensionsregulator.gov.uk

Editor's notes

1. The fully interactive e-learning programme will comprise a series of stand-alone modules designed by e-learning and pensions experts. Successful completion of all the modules will help trustees meet the requirements for trustee knowledge and understanding set out in the 2004 Pensions Act.
2. The findings of the research undertaken into e-learning for trustees have been published in the Pensions Regulator's E-Learning for Trustees Report, see www.thepensionsregulator.gov.uk
3. The Pensions Regulator has been established as the new regulator of work-based pensions in the UK, with wider and more flexible powers under the Pensions Act 2004. It has replaced Opra which no longer exists.
4. The new powers of the Pensions Regulator include the ability to:
5. • collect more detailed scheme information;
   • impose a statutory obligation on 'whistleblowers' to report suspected breaches of the legislation to the regulator;
   • issue improvement notices and third party notices, enabling the regulator to ensure problems are put right;
   • freeze a scheme that is at risk, while the regulator investigates; and
   • prohibit trustees who are judged not fit and proper to carry out their duties.