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NAPF West Midlands Autumn Conference 30 Nomber 2005

25 Nov 2005

Pension Scheme and Governance

Scheme and Governance

  • Risk reviews
  • Governance structure
  • Business Plans
  • Governance Manual
  • Periodic Assessments

Risk Reviews

  • Identify your risks
  • Gauge impact and probability
  • Specify controls, ownership and reporting requirements
  • Review cycle

Governance Structure

  • Committees and other delegations 
  • Terms of reference and reporting
  • Job descriptions
  • Conflicts of interest and duty

Business Plans

  • Statement of objectives
  • Rolling programme
  • Progress monitoring
  • Keep them in mind

Governance Manual

  •  Job descriptions

-Chariman

-Trustees

-Secretary

  •  Trustee Committee Structure

- General objectives

- Terms of reference

- Business plans

  • Risk review
  • SIP
  • SFP
  • MNT arrangements
  • Dispute procedure
  • External delegations

Assessment of Trustees

  • Chairman
  • Appointed trustees
  • Nominated trustees
  • Professional trustees

Assessment of Providers

  • Administrator
  • Actuary
  • Auditor
  • Custodian
  • Doctor
  • Fund consultant
  • Fund manager
  • Lawyer
  • Secretary

Benefits

  • Alignment of expectations and delivery
  • Recognition of good service
  • Control of costs
  • Updating the relationship
  • Receiving the feedback
  • Planning ahead

Process

  • Frequency
  • Format
  • Preperation         -> Existing terms

                                         -> Market information

                                         ->Perecived vale

  • Agenda
  • Record

Issues

  • Contractual terms
  • Responsiveness and proactiveness
  • Calrity and relevance of output
  • Adeuqcy of resource and continuity
  • Level of client support
  • Conflicts of interest and duty
  • Liability cap
  • Cost

Trustee Assessment of Service Providers

Legal Services/Investment Consultant/Actuary

Advice

                                                                                                                                                                    Good      <->       Bad

  • The relevance and accuracy of advice provided                                                                           1     2    3    4    5    6                     
  • The clarity of explanations and information suplied                                                                    1     2    3    4    5    6
  • The practicality of recommendations                                                                                             1     2    3    4    5    6
  • The adviser's understanding of your needs as Trustee                                                             1     2    3    4    5    6
  • The adviser's ability to provide solutions to problems                                                                1     2    3    4    5    6

Communication

  • The quality of oral presentations                                                                                                      1    2    3    4    5    6
  • The quality of reports/other correspondence                                                                                 1    2    3    4    5    6
  • The frequency of communication of issues affecting the scheme from the legal sphere    1    2    3    4    5    6

Trustee Meetings

  • The depth of preparation                                                                                                                      1    2    3    4    5    6
  •  The value of the adviser's contribution at Trustee Meetings                                                        1    2    3    4    5    6

Professional Relationships

  • The suitability, in terms of seniority, of the adviser                                                                         1    2    3     4    5    6
  •  The professionalism of the adviser                                                                                                  1    2    3     4    5    6
  • The "proactiveness" of the adviser                                                                                                     1    2    3     4    5    6
  • The approachability of the adviser                                                                                                      1    2    3     4    5    6
  • The adviser's knowledge of the Scheme                                                                                          1     2    3     4    5    6

Quality of Service Provided Overall

  • Efficiency                                                                                                                                                    1    2    3    4    5    6
  • Speed of response                                                                                                                                  1    2    3    4    5    6
  • Ability to meet deadlines                                                                                                                         1    2    3    4    5    6
  • Value for money offered                                                                                                                          1    2    3    4    5    6
  • Transparency of fees                                                                                                                               1    2    3    4    5    6

 

 

Additional Comments

 

 

Charging basis:

Last year's costs:

Next year's issues:

 

Pension Trusteeship

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