The Pensions Regulator

Pensions Regulator releases investment module of Trustee Toolkit

Ref: PN06-22
12 June 2006

'Four major asset classes', the latest module of the Pensions Regulator's free e-learning programme for pension scheme trustees, is now available online at www.trusteetoolkit.com

In this module the trustees decide to set up an investment sub-committee in which the learner becomes a member. It covers the absolute fundamentals about each of the four major asset classes, about capital markets and economic cycles, valuation and measuring performance and about risk and reward in relation to each of the four asset classes. There is also a tutorial about with profits policies and case examples.

Head of regulated community learning April Alexander said: "This module gives an introduction to investment and will be of interest to trustees of both defined benefit and defined contribution schemes.

"The objective is to give trustees a grounding in the subject for forthcoming modules on funding a DB scheme and the design and management of a DC scheme and on fund management, which applies to both types of scheme."

There will be a module on specialised assets and investment techniques at the end of the e-learning programme for those trustees that require it.

The trustee toolkit is made up of a series of modules - each containing a number of scenarios in which the user plays the part of a newcomer to a fictitious trustee board. The scenarios are based on real-life examples which trustees may well come across in their role.

The programme was developed in response to the trustee knowledge and understanding requirements of the Pensions Act 2004, and is designed to help trustees comply with the new legislation.

Completing the e-learning programme will provide, for the majority of trustees, a convenient way to bring their knowledge and understanding up to date in a way that also encourages them to become familiar with their own scheme.

For immediate registration visit: www.trusteetoolkit.com

Editor's notes

1. The Pensions Act 2004 (sections 247-249) requires trustees to have knowledge and understanding of the law relating to pensions and trusts, and the principles relating to the funding of occupational schemes and the investment of scheme assets. They must also be conversant with their own scheme's policy documents.
2. The code of practice on trustee knowledge and understanding is now in effect. This helps trustees to comply with the requirements and can be found, along with additional guidance for trustees, on the regulator's website at www.thepensionsregulator.gov.uk/trustees.
3. The Trustee toolkit syllabus has been based on 'Scope guidance' available on the regulator's website, and also forms the basis of a new voluntary qualification for trustees launched by the Pensions Management Institute. This new voluntary qualification will replace the current Trustee Certificate offered by the Pensions Management Institute.
4. The Pensions Regulator is the regulator of work-based pensions in the UK, with wider and more flexible powers under the Pensions Act 2004.
5. The powers of the Pensions Regulator include the ability to:
   • collect more detailed scheme information;
   • 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.
   • The Pensions Act 2004 also imposes a statutory obligation on 'whistleblowers' to report suspected breaches of the legislation to the regulator.