Pension scheme sponsors using a professional corporate sole trustee (PCST) model have seen improved governance, efficiency, and speed of decision making as a result, Independent Governance Group (IGG) has found.

IGG analysed expectations and experiences of the PCST model among advisory firms and sponsoring employers.

Every sponsor surveyed reported improved governance due to appointing a PCST, with 58 per cent saying that the governance improvements were significant.

Nearly four in five (79 per cent) sponsors said they spent less time managing their pension scheme following a PCST appointment.

IGG also analysed the outcomes experienced by sponsors using a PCST model, with 37 per cent citing quicker decision making as the main benefit since making the switch.

Almost a third (32 per cent) pointed to increased expertise as the primary benefit, with 79 per cent experiencing this overall.

Sponsors also cited improved management and oversight of complex projects (11 per cent) and increased clarity on long-term funding objectives and strategy (11 per cent) as key benefits.

Advisory firms also pointed to quicker decision making as the main benefit driving sponsors to consider the PCST model, followed by increased expertise and reduced demands on time for sponsor management.

When asked about their primary concerns before adopting a PCST model, 37 per cent of sponsors said they had no concerns, while others had reservations about increased costs (16 per cent), slower decision making (11 per cent), and member perception (11 per cent).

Meanwhile, advisory firms also highlighted perceptions among members and existing trustees as common barriers to PCST adoption, while 33 per cent pointed to a lack of sponsor knowledge about the PCST model.

Anticipated growth

More than four in five (83 per cent) advisory firms expected growth in the number of pension schemes with a PCST to continue in 2026, including 25 per cent who anticipated significant growth.

However, this was down from 93 per cent expecting the adoption of the PCST model to grow in 2025.

Many mid-to-large sized schemes were being affected by the same factors driving wider adoption by smaller schemes, according to the research, including increasing complexity, regulatory requirements, and resourcing challenges.

Other factors expected to drive growth included developments in The Pensions Regulator’s oversight framework and the challenge of managing the complex market environment.

Advisory firms also reported that many schemes where a professional trustee had already been appointed planned to move to a PCST model in the next 12-18 months.

However, those firms who expected growth to slow suggested that some sponsors had already ruled out the PCST model in favour of a co-trustee approach.

“Governance pressures mean sponsors continue to spend a material amount of time on pension matters, with pension schemes constantly having to adapt to market and regulatory complexities while juggling internal resource challenges,” said IGG trustee director and head of PCST, Annabelle Hardiman.

“Doing the right thing for members in this new context often means revisiting what’s worked in the past and weighing up alternatives to ensure sponsors have the best solution in place for today’s realities.

“No one approach is right for every scenario, but our findings show implementing a PCST model typically results in quicker and more agile decision-making, simplified governance as well as the efficiencies that come with greater access to professional expertise.

“The PCST model has emerged as an attractive and increasingly well-established solution, to the extent that for many sponsors, the question is no longer whether it works, but actually when it becomes the right option for their scheme.

“There are clear signs that more sponsors of mid-to-large schemes are already asking themselves this question, but it is important to ensure that members and existing trustees are taken on the journey.”

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