The Pensions Management Institute (PMI) and the Occupational Pensions Defence Union (OPDU) have joined forces to launch a continuing professional development (CPD) initiative that aims to boost standards of governance among trustee boards.

Under the new initiative, trustee boards will be asked to carry out an analysis session conducted by the PMI to identify training needs; and will be required to complete the minimum level of CPD during a year. In addition, they will be asked to nominate a signatory to declare that all board members have satisfactorily met these needs.

CPD certificates will be issued on successful completion and will be “favourably taken into account when assessing the premium rating for new applications and renewals for trustee indemnity insurance,” OPDU promised.

PMI chief executive Vince Linnane said: “We would hope that trustee boards see this as blue riband not red tape. We are not adding to their work rather ensuring that they get a higher recognition from employees, pensioners and the company for the hard work and diligence that they are already undertaking and displaying. The best trustee boards are already delivering well above and beyond the minimum – they should be publicly lauded for their efforts.”

OPDU Chairman Jonathan Bull added: “We are pleased to partner with the PMI in this initiative. Anything that raises standards and helps to reduce risk can only be good for the pensions community. Whilst every application for insurance will be treated on its merits, the PMI Trustee Group CPD Certificate will play a very positive role in the assessment of trustee indemnity insurance premium ratings and it provides a useful tool to help trustees to minimise risk.”

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