Trusteeship

Trusteeship

Professionalism & independence

Pi Consulting works with a number of clients in the role of Independent/Professional Trustee. Pi’s usual approach in this area is to take on appointments which are a result of recommendation/referral from other pension professionals. By adopting such a 'selective' approach, Pi ensures that our skills and resources are, as far as possible, matched to clients who value professionalism and expertise.

Pi is acutely aware of the need to be cost effective and pride ourselves in providing a completely transparent service.

Pi is fully prepared to take on challenging roles as our abilities in the field are based on experience, together with the knowledge gained from working in an ever changing pensions environment.

Pi works on a principle of lead and shadow, so there is always a consultant available to support the efficient conduct of Trustee business ensuring decisions can be taken in a timely manner.

As an Independent/Professional Trustee, Pi:

• Brings knowledge, experience and leadership (where appropriate) to trustee bodies
• Is independently minded, but also a team member
• Recognises the duties and responsibilities owed to:
  • Members
  • Employers
  • Trustee colleagues
  • Advisers
• Understands and helps ensure compliance with pensions law and regulation
• Is fair, objective and professional.

Winding-up Schemes

The issues that arise during the wind-up process can be complex and time consuming.  It is essential trustees have the right support and advisers to see them through this process.  Once the scheme assets have been discharged, trustees have no further opportunity to rectify any errors in the level of pension secured for a member, therefore, it is essential that due care and attention is given to every element of this process to prevent claims made against former trustees at any time after the event.

At Pi, we understand the complexities trustees and sponsoring employers face when winding up a pension scheme and offer:

• Practical and wide ranging experience of managing a broad range of both defined benefit and defined contribution pension schemes in partial / full wind up, including schemes going through Pension Protection Fund assessment periods and the management of the specialist wind up team of a major consultancy firm for many years
•  A dedicated, proactive, approach to project management – keeping the project on track and on budget, driving through progress, whilst keeping all stakeholders in the picture as appropriate.  This will ultimately shorten the overall timescale of the wind up, which will also positively impact on long term costs
• Working knowledge of advisers who can assist trustees/employers in deciding on a review of the bulk annuity market and procurement of other advisers with the necessary skills and knowledge if required.

Our wind-up service is tailored to fit an independent trustee positon working alongside existing trustees, act as sole corporate trustee or simply provide project management and secretariat support services during the wind up project.

At the end of any wind-up process, we aim for trustees (and sponsors) to feel confident that all reasonable steps have been taken to ensure trustee duties have been fulfilled and members’ interests looked after, within the best achievable timescales and on budget.

Project Example - Solomon

Pi was invited to join the board of the trustees as an independent trustee and to assist them in progressing their funding and investment deliberations with the sponsor.

This trustee client was in the process of reviewing the results of a recent actuarial valuation with a view to putting in place a revised funding and deficit recovery plan. The trustees were also beginning the process of consulting with the sponsoring employer regarding its long term investment strategy.

The sponsoring employer had indicated it was keen that the trustees adopt a more aggressive investment strategy.

In order for the trustees to consider this request, an independent covenant review was commissioned, which included an assessment of the overseas parent company.

Pi was instrumental in negotiating an employer guarantee from the overseas parent worth £40 million thus placing the trustees in an improved position with regard to agreeing the ongoing funding and investment strategy for their scheme.

Once the guarantee was in place, the Scheme Actuary was able to finalise the valuation, its assumptions took into account the guarantee.