Speaking at the PMI’s Defined Contribution and Master Trust Symposium in London, PMI President Girish Menezes said the rapid growth and consolidation of defined contribution schemes has fundamentally changed what good trusteeship looks like.
He said governance, administration, technology and member outcomes now sits firmly at the centre of decision-making.
Mr Menezes told delegates: “The scale and complexity of modern pension schemes means the nature of trusteeship needs to continue to evolve, and rapidly.
“We now have trustees overseeing schemes with millions of members and billions of pounds in assets. Capability, and professional competence remain essential, and in addition we must push for greater diversity on trustee boards.
“We do not allow people to practise as accountants, lawyers or doctors without recognised qualifications. Trustees are responsible for decisions that shape people’s retirements for decades without a mandatory requirement to follow an equivalent professional framework.
“That position is becoming increasingly difficult to justify, which is why we and others continue to discuss all options with government and regulators.”
Defined contribution provision now dominates the system, with nearly 33 million members and the vast majority of assets concentrated in large master trusts. That consolidation, Menezes said, brings benefits of scale but also raises the stakes if governance falls short.
Mr Menezes said: “Even well-funded schemes can fail members if governance and administration are weak. That is why rising regulatory expectations around trustee competence are essential and inevitable. .”
PMI driving higher standards across pensions
The PMI has placed professional standards, qualifications and ongoing development at the core of its work, supporting trustees, governance professionals and administrators as regulatory scrutiny intensifies.
“Good trustees today must be able to lead and challenge boards, understand operational and technology risk, oversee data quality and value for money, and communicate clearly with members,” Mr Menezes told the conference. “Training, qualifications and continuous professional development are no longer optional. They are fundamental.”
Trustee Accelerator Programme opens to public applicants
As part of its drive to raise standards across the industry, the PMI also confirmed that public applications are now open for its flagship Trustee Accelerator Programme (TAP), a sector-wide initiative designed to build a new pipeline of diverse and highly capable trustees.
Backed by some of the UK’s largest master trusts, TAP is designed to identify individuals with strong judgement, leadership and challenge who may not follow a traditional pensions career route and equip them with the skills needed to operate effectively as trustees in today’s schemes.
“The Trustee Accelerator Programme is about building trustee capability from the ground up,” Mr Menezes said. “It is deliberately aimed at people who may never have considered a career in pensions before, but who have the potential to make excellent trustees once they are given the right skills and support.”
He added that the programme also supports better and more diverse decision-making at board level. “If we want stronger governance tomorrow, we have to invest in capability today,” he said. “TAP is about creating a sustainable pipeline of future trustees at exactly the moment the system needs it.”
The PMI said the opening of TAP to public applications marks a major milestone, transforming it from a limited pilot into a truly industry-wide programme.
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