Written by Stephen Fallowell - Recently published in PensionsAge
We have just undergone a General Election in which the electorate voted for their chosen candidate. The person elected, irrespective of their political persuasion, then represents all people in their constituency. Politicians come from wide range of backgrounds: educational, professional and social. We welcome this diversity as the best way of providing a range of opinions and of challenging the executive. This is the strength of a democracy.
Member Nominated Trustees can be appointed to their role by election, selection or a combination of these two methods. Recently a DB Pension fund has moved from election to a selection process arguing that this method is the ‘increasing industry practice’ and that it ‘enables them to pick candidates with appropriate skills’.
A recent survey undertaken by the AMNT, amongst predominately DB members found that the election process is the main method of appointment, with selection the least favoured.
The Pension Regulator as part of its drive on governance seeks boards with skills, knowledge and experience; these skills should be used within a team environment and further that schemes need an engaged and diverse board.
A selection process tends to lead to ‘Group Think’ with appointments being made, by persons, of persons with similar mind-sets.
Democracy may not elect the person you like but it ensures diverse skills and representative appointments.