Welcome to the latest edition of Trust e-matters.
I must start by thanking everyone who attended our Annual Pensions Conference on 29 April and participated in the interactive sessions. I hope you were both stimulated and entertained by our fantastic speakers including Robin Ellison, François Barker, Steve Mingle and, to end the conference, Steve Delo. We had a record attendance this year, with nearly 300 delegates representing trustees, pension managers and industry professionals. You can read the conference highlights for more detail and register your interest for next year's event.
Our conference focused on the next decade and covered some of the issues we are looking at in more detail in this edition.
We start by considering the current topic of Record Keeping, which, with the Regulator’s focus on this area, has launched this traditionally backwater topic firmly into the spotlight. The Regulator has set target dates for trustees to improve the standard of data they hold. There could be stiff penalties for those failing to take this matter seriously and we have set out some practical steps that can be taken early and with little cost.
Our last two conferences have included sessions focusing on issues around Defined Contribution arrangements. Our experience is that these arrangements are not given the ‘air time’ they deserve compared to Defined Benefit matters and it would appear that the Regulator agrees. In the coming issues of Trust e-matters we will explore DC risks in detail and in this issue we set the scene. Our aim is to help avoid DC arrangements becoming the next “pensions time-bomb”.
Finally in this issue, we look at the Regulator’s proposed guidance on covenant reviews. We recognise the strength of the covenant as an important area for many trustee boards and the results of our 2010 Pension Scheme Trustee Confidence Survey will be published shortly. This will give you an insight into the views of other trustees on the approach to covenant reviews.
Please let us have your feedback on Trust e-matters and your usual Baker Tilly contact would welcome your ideas for topics to be included in future editions.
In this issue
We believe that trustees of defined benefit schemes are now more aware of the importance of the employer covenant than previously. The Regulator agrees, but it is now proposing guidance on what needs to be done. Will the guidance be useful?
The Pensions Regulator has been pushing good record-keeping for the last 18 months, but what are the practical steps that you should take?
Although the future for Defined Contribution schemes seems certain, there are actions that trustees and employers should consider to maximise value for the members.