DWP “Trust-based pension schemes” consultation outcome

Commenting on the DWP “Trust-based pension schemes” consultation outcome, Hannah Clifford, Trustee Governance Lead, Hymans Robertson says:

“We welcome the focus on collective effectiveness and the recognition that all pension schemes should be assessing board effectiveness on a regular basis. The right skills matter, but true board effectiveness comes from how trustees work together, challenge advice and make decisions.

“The principles-based approach should leave enough room for Chairs to determine an appropriate approach for their scheme which examines key areas of governance such as conflicts management, board culture and debate, quality of decision-making and adviser oversight.

“Whilst many schemes already run a periodic effectiveness process, this will encourage all schemes to adopt regular evaluation, helping to embed good practice and strengthen how boards operate.”

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