13 October 2011
The Pensions Regulator today published a paper on “The role of trustees in DC schemes”.
It works rather well in establishing the key differences in trustee duties for DC (asset protection, investment choice, cost structures and contributions) as opposed to DB (payment of benefits and employer covenant).
One key requirement is the need to be clear what the nature of the promise to DC beneficiaries is, the consequential duties on trustees and the powers and governance resposibilities that are adopted in the fulfillment of those duties.
The paper is short and it is worth reading by all (DB as well as DC) trustees.