OPINION: Replicating for success

Most organisations review their performance in order to rectify deficiencies, but when they find something done well, they try to replicate it across the business.

I’d like to see this logic applied to pension schemes and in particular to TPR’s 21st century trusteeship project. TPR director for regulatory policy Andrew Warwick Thompson’s recent comment on pensionsage.com seems to suggest scheme governance will only be improved through regulation and support from an outside agency, namely TPR.

I’m not suggesting for a minute that TPR shouldn’t seek to drive up standards of governance, but I’d like to see it look for role models among schemes and trustee boards that exceed basic expectations.

The quantitative data Andrew offered focuses on what’s wrong with schemes, not what’s done well. Rather than thinking of clever regulation, benchmarking existing best practice would seem to offer better value for money for TPR’s far too limited budget.

Let me tell you why. AMNT’s typical member is male, over 55 and more than half are still working. Almost two thirds of them are elected MNTs with an average of eight years’ experience. Trustees have done a good job on the whole. There is a lot of talk about trusteeship quality, but it is usually the worst-resourced function of any scheme.

Most AMNT members believe they are given sufficient time for trustee activities, but fewer than a third are paid for their time and more than 10 per cent do not get all their expenses covered.

There is no better example of the alignment of interests than through trustees representing their membership. Instead of simply finding flaws in the system, TPR should marvel at its achievements and seek to preserve the best practices.

    Share Story:

Recent Stories

Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth. Please click here for an edited write-up of the video

ESG & DC – creating the right tools
In the latest of our series of Pensions Age video interviews Francesca Fabrizi, Editor in Chief of Pensions Age is joined by Manuela Sperandeo, Head of Sustainable Indexing EMEA, BlackRock and Mark Guirey, Executive Director, Asset Owner and Consultant Coverage - MSCI to discuss some key trends of ESG investing among UK pension funds today. Please click here for an edited write-up of the video

Savings and finance at retirement
Laura Blows is joined by Claire Felgate, Head of Global Consultant Relations, UK, at BlackRock, to discuss savings and finance at retirement. Please click here for an edited write-up of the video

Global sustainable credit
Laura Blows speaks to Royal London Asset Management senior fund manager, Rachid Semaoune, about global sustainable credit
Global equities and transition investing
Pensions Age editor, Laura Blows speaks to Royal London Asset Management equity investment director, Jonathan Price, about transitioning to sustainable investments within global equities

Advertisement Advertisement Advertisement