Written by Sandra Wolf- Mallowstreet
Badly run schemes need to improve or consolidate, said the Pensions Regulator as it proposes to reduce the number of poorly governed pension schemes in a consultation launched today. The [Future of Trusteeship and Governance](https://www.tpr.gov.uk/en/document-library/consultations/future-of-trusteeship-and-governance-consultation) paper considers how the trustee model can be made more effective.
"The trustee model isn’t broken, but it does need to be greatly improved. There is stark evidence that the current system doesn’t work for all and there is a clear disparity between the experience of savers in well-run and badly-run schemes. If trustees cannot meet the standards we expect, we believe they should wind up and consolidate savers into a better run scheme," said David Fairs, executive director of regulatory policy, analysis and advice at TPR.
Questions posed to the pensions industry in the 30-page consultation include:
- Should there be an accredited professional trustee on every board?
- Are sole trustees on a pensions board able to run pension schemes appropriately?
- How can barriers to consolidation be removed?
- Should a legal requirement be brought in for trustees to meet minimum standards of knowledge and understanding and ongoing learning?
- How can diversity on pension scheme boards be improved?
Fairs added: "Despite our work, including through initiatives like 21st Century Trusteeship, there is still a subset of disengaged trustees who either refuse or are unable to improve standards in their schemes. "This clearly is not fair for savers – we believe that everyone saving for a pension should be in a scheme with excellent standards of governance and which is providing good outcomes for savers."
The consultation will be open for 12 weeks, closing on September 24. Responses can be submitted through the [TPR website](https://www.tpr.gov.uk/en/document-library/consultations/future-of-trusteeship-and-governance-consultation). What will it mean for trustees? David WeeksNeil McPhersonRichard ButcherRobin Ellison