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UK. A third of DB schemes now have professional trustees
According to data obtained from the Pensions Regulator through a Freedom of Information request, 32 per cent of DB schemes used a professional trustee company in 2020-21, which compares with 20.1 per cent in 2015-16.
This means one in three DB schemes now use a professional trustee company, while in 2015 only one in five pension funds used these services.
LCP stated that the rise was due to the increased complexity and weight of new regulation, requirements and guidance on DB schemes, in which a “professional trustee with a wide experience of other schemes and a deep knowledge can add value within a board”.
The consultancy also noted that new rules in the Pensions Schemes Act 2021 around potential criminal sanctions imposed by TPR may motivate many more schemes to use specialists to help them navigate this complexity.
Other reasons for the rise of these appointments is that there has been a decline in the number of member-nominated trustees putting themselves forward to be nominated
Furthermore, LCP noted there is less appetite for senior corporate individuals to act as a trustee, particularly in the light of the possible conflicts of interest that this might create.
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