The funding of defined benefit pension schemes is a complex area. Advisers have a crucial role to play to support trustees and employers in carrying out their functions.
Advise trustees about how they must establish and operate internal controls that enable them to identify, evaluate and manage the risks that relate to their defined benefit pension scheme.
Work with trustees of defined benefit pension schemes to help them achieve good record-keeping and efficient internal controls. This should help to ensure good scheme governance and that data is up to date, complete and accurate.
Work with trustees of defined benefit pension schemes and employers to set their contribution rate, maintain a schedule of contributions and check that the employer makes the correct payments.
Advise trustees on what information they need to make available to members, prospective members and other people entitled to benefits under defined benefit pension schemes.
You should help your clients to identify, monitor and manage conflicts of interest that might or do arise in their role as trustees of a defined benefit pension scheme.
This page applies to you if you’re appointed by trustees of a defined benefit pension scheme to help them to understand the impact of corporate changes and transactions on their scheme.
These examples represent trustee behaviours we have observed which we believe that trustee boards striving for excellence can learn from. They are not a complete guide on how to run a pension scheme effectively.