Why Appoint an Independent Trustee

Whatever the size of your business, if you run an occupational pension scheme, whether defined benefit or defined contribution, and whether or not it remains open to future accrual, the chances are that the scheme liabilities of any final salary arrangements are significant in terms of the NPV ( ) of your Company. If so, you will probably be spending considerable management time and resources dealing with pension issues.

Any Scheme you sponsor must be well managed. If you do not have adequately trained Trustees, conversant with the Scheme Rules and the relevant legal and regulatory framework, as well as a sound knowledge and understanding of the Scheme’s investment strategy, there is a likelihood that you will fall foul of the of Pension Regulator’s requirements. In certain situations this could result in Contribution Notices being served on you, or the Pension Regulator appointing Independent Trustees to run the Scheme.

Add to this the increasing difficulty in finding suitably qualified individuals within your own organisation to act as Trustees, who do not face potential conflicts of interest when setting contributions etc., and who have the time, energy and enthusiasm to devote to keeping up to date with the growing volume of legislation, Codes of Practice and the Pensions Regulator’s requirements around Trustee Knowledge and Understanding, and the chances are that you need help. You need to think about an Independent Trustee.

You may think that appointing yet another professional to help run the Scheme has little to recommend it at a time when you are doubtless trying to stem the spiralling costs of the Scheme. After all, appointing an Independent Trustee will not replace the various advisors such as Scheme Actuary, lawyers and investment advisers, all of whom have an increasing role to play at a time when most Trustees are grappling with funding deficits and assessing the strength of the employer covenant, alongside putting in place ever more complex investment strategies designed to dampen down future funding risk.

With all these complex issues which you and your Trustees have to deal with, the question should be not whether you can afford to appoint an Independent Trustee, but whether you can afford not to.

The Role of an Independent Trustee

An Independent Trustee will usually work alongside your existing Trustees, often as Chair. You may also wish to appoint an independent as sole trustee. Appointments can be ongoing or project based, i.e. to act during a particular negotiation such as a corporate acquisition or disposal. Independent Trustees will have exactly the same duties and responsibilities as the other Trustees; however, they can perform an important role in a number of areas. These are some of the situations where an Independent Trustee can add value and ultimately save you cost:

• Assisting Trustees in understanding their role and complying with statutory requirements.
• Training/mentoring new Trustees.
• Providing a link between Trustees and Advisors, including challenging advisers to deliver solutions commensurate with Scheme requirements and budget.
• Developing relationship(s) with sponsoring Employer(s) including leading or assisting the Trustees during funding and other negotiations.
• Bringing an objective and independent view to issues such as assessment of the strength of the employer covenant.
• Identifying and managing potential conflicts of interest.
• Ensuring good practice in areas such as decision making and Scheme governance.
• Bringing professional experience and expertise to investment strategy and appointment of investment managers.
• Ensuring all Scheme Risks are properly identified, understood by both Trustees and Employer, and managed appropriately.
• Helping members understand their scheme benefits and choices, particularly in defined contribution schemes where the members are taking significant investment risk.

If you think you need help in any of these areas then please contact me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call our office to arrange an informal discussion.

About Nita Tinn

Why Appoint Me?

There are a growing number of firms and individuals in the market offering Trustee services, some sole practitioners, others attached to consultancy firms. I believe I can offer a truly independent service by working closely with you to establish your needs, and by developing strong relationships with both the Trustee Board and advisers. If I do not consider the advisers are delivering excellent service I will say so, and am happy to head up adviser selection exercises if required. I will only take on a role where I believe there is a genuine desire on the part of both Trustees and Employer to reach the best solution to secure the members’ benefits. I am happy to consider both long term and project based appointments.

Experience to date

I have chaired a number of Trustee Boards with assets under management ranging from approximately £45 million up to £800 million. My background is as a Corporate Lawyer and Company Secretary. I am also a trained Mediator which is a useful skill when chairing a Board of pension Trustees. During my time as a Trustee I have gained experience in the following areas:

SCHEME GOVERNANCE: introducing new governance structures and procedures including selection procedures for Member Nominated Trustees; revising and reviewing risk registers and business plans; overseeing rule changes and re-structuring of scheme benefits.

DEVELOPMENT OF TRUSTEE BOARD: assessing Trustee Board effectiveness through annual reviews and mentoring new trustees; leading Boards through decision making process and discussion with employers on corporate re-structuring events etc. improving Trustee knowledge and understanding.

INVESTMENT STRATEGY: reviewing investment strategy and introducing liability driven approach following asset allocation studies, engaging in manager selection and appointments, including contractual terms; ensuring adequate DC investment choices for members, and introducing ‘lifestyle’ strategies.

MANAGEMENT OF ADVISERS: developing strong relationships by regular contact and use of performance reviews; benchmarking and appointment of advisers ensuring best ‘fit’ for Trustee Boards.

RELATIONSHIP WITH SPONSORING EMPLOYERS: fostering better understanding between Trustees and Employers; ensuring agreement on investment strategy; understanding and examining strength of employer covenant and managing conflicts of interest.

MEMBER COMMUNICATIONS: improving accountability to members by ensuring information is available in readily understood format.

I am a member of the following:

• Securities and Investment Institute (Student Member)
• PMI (Trustee Member)
• Pension Trustee Circle
• Independent Trustee Network

In addition to being a qualified lawyer I have the following professional qualifications:

• Securities and Investment Institute Introduction to Securities and Investment
• PMI Certificate of Essential Trustee Knowledge
• CEDR Accredited Mediator

If you would like to discuss a potential appointment please contact me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call 01954 231144