The challenge of engaging members in joining their pension scheme trustee board.

For pensions schemes in the UK it is becoming increasingly challenging to attract individuals to take part in the Member Nominated Trustee (MNT) selection process. Anecdotal feedback as to why this is, from across Law Debenture’s 230+ pension scheme appointments, ranges from concerns over the time commitment, concerns over the increasing knowledge level required and lack of awareness of the opportunity to become an MNT. 

Law Debenture works closely with its clients to ensure the governance structure in place is suitable for the scheme. Corporate Sole Trusteeship is increasingly popular and mitigates the need to appoint MNTs, however for many schemes a traditional trustee board is the optimal solution with members represented by an elected representative. The benefit of having MNTs in place cannot be underestimated and we often see schemes with engaged MNTs generate higher member engagement scores than those without due to their reflection of the membership and diversity of thought they bring. 

As an MNT on the trustee board of my employer’s pension scheme I have been able to improve the communications we send out to members. By asking myself, ‘would I have understood this?’ I have been able to make suggestions which have been adopted across future member communications. For most of us our pension is something to think about later on – but occasional engagement early on can lead to improved outcomes and as an MNT I believe I am spreading the word on that. 

How do we support schemes with their MNT selection process?  

Create an accessible, inclusive campaign:

• Consider the language used in the advertisements – is it plain English, is it clear and concise, is it positive?
• Have more information ready to go – an FAQ doc, a named point of contact, a date to find out more.
• Use many, suitable channels to push out the message – posters in the workplace, emails from known contacts, team meetings, newsletters
  Share examples of exciting work that comes with the role and the positive impact this can have for members.

Actively support candidates through the selection process: 

• Once the candidates have put their names forward we can offer a session to talk them through the requirements of the role in detail so that they can get a better understanding of an MNT’s commitments and the scope of the role. Candidates are then given the opportunity to confirm they want to continue with the process The session covers: 
  • Scheme details
  • Principles of trusteeship
  • Key stakeholders – details of the scheme advisers, their roles and responsibilities
  • Balance of powers
  • Legal liabilities as MNT
  • Time requirement of the role
  • Available resources such as the Trustee Toolkit

Encouraging members to engage with pension scheme communications is an ongoing challenge and a major reason MNT recruitment is proving difficult. However, by making the process as transparent, accessible and welcoming as possible we start to see success in the process. 

To find out more about how to engage members with their pension reach out to pensions governance expert Chris Hay.