The SPP response emphasises that the UK’s current trusteeship framework is working well for the vast majority of members, delivering secure benefits and governance standards that are proportionate to scheme size and complexity.
With the pensions landscape in the UK evolving rapidly, the SPP is calling for targeted, risk-based reform rather than sweeping structural change.
The response highlights the positive impact of professional trustees in improving expertise, reducing key person risk and strengthening decision-making. It supports proportionate governance standards, robust conflict management and clearer delineation between trustees and executive management, particularly in large master trusts and megafunds.
The SPP response also warns against arbitrary limits on trustee tenure or the number of appointments an individual may hold, arguing that periodic independent governance reviews would provide a more effective safeguard.
The response also highlights that as consolidation grows and lay trusteeship declines, formal mechanisms such as member advisory panels, surveys, structured engagement and impact assessments will be increasingly important in ensuring that the member voice continues to be heard.
With regard to administration market resilience, the SPP cautions that consolidation could reduce competition and innovation among administrators, creating systemic risk if not carefully managed. Proportionate regulatory oversight and contingency planning is therefore essential.
Finally, the SPP does not believe that expanded intervention powers for TPR are currently necessary, arguing that “…the focus should be on TPR using its existing powers promptly and effectively, in the right circumstances and at the right time.”
Jo Fellowes, Chair of the SPP’s Administration Committee, said: “The UK’s trust-based pension system is fundamentally strong. The SPP believes that reform should build on what works i.e. proportionate governance, professional expertise and clear accountability, rather than impose arbitrary restrictions.
As schemes consolidate and grow in complexity, the focus must remain firmly on protecting member outcomes through robust oversight, effective conflict management and meaningful engagement with savers.”
|
