Pensions - Articles - TPR’s involvement could lead to improved scheme governance

 “Good governance is key to running pension schemes well and TPR’s involvement is fundamental to driving up standards.

 “TPR must strike a balance between measures to encourage high standards and those which might operate as barriers to trusteeship. The skills needed for effective trusteeship are often practical and grounded in experience – there are likely to be limits to the extent these can be tested by exams. Focusing on individual skill sets and in-role training may be a better way to attract and retain good candidates, rather than introducing barriers to the role of a trustee. This may also form a better basis for recruiting a group of trustees who can combine together to form an effective board.

 “Most often, schemes that are well governed are those which have tailored their governance plans to their own needs and circumstances – there is no ‘one size fits all’ in this area. It’s also not a one-off exercise – achieving good governance is a continuous process.

 “It would be beneficial for all schemes if TPR can share best practice and provide focused guidance that will assist schemes in achieving high standards of governance.”

 To read Sackers’ full consultation response, click here.