Trustee Effectiveness: | Frequently Asked Questions

What is a Trustee Effectiveness Review?

A Trustee Effectiveness Review is a structured assessment of how well a trustee board is operating. It examines decision-making processes, governance frameworks, training, board culture, risk management, and documentation. The goal is to identify strengths and areas for improvement, so the board can continually develop and remain fit for purpose.

Why should our board undertake a Trustee Effectiveness Review?

Strong governance does not happen by accident. Regular reviews help boards stay ahead of emerging challenges, embed best practice, and ensure that the right skills, processes, and culture are in place. They also provide an independent, objective perspective that internal review alone cannot always offer.  An Own Risk Assessment (ORA) requires a review of the effectiveness of the trustees Effective System of Governance (ESOG) – completing an Trustee Effectiveness review covers a number of areas in the ESOG so can be used to inform the schemes ORA.

How often should a Trustee Effectiveness Review be carried out?

Effectiveness reviews should not be treated as a one-off exercise. Governance is an evolving discipline, and periodic reviews help boards maintain momentum, track progress against previous recommendations, and respond to changes in regulation, membership, and risk.  We often see trustees completing a more in depth review every three years with a lighter touch review in the intervening years.

What are the most common issues identified in Trustee Effectiveness Reviews?

Common themes include overloaded meeting packs that dilute focus, inconsistent paper formats, gaps in succession planning, insufficient or poorly timed training, underdeveloped business continuity plans, and governance documentation that has not kept pace with how the scheme operates in practice.

How can Trustee Effectiveness review be completed?

We use two approaches to these reviews. Our preferred approach is for the review to be completed interactively in a trustee meeting where the trustees answer questions using interactive software which provoke discussion on areas where there may be diverse views within the trustee board.  Alternatively we can carry out these reviews by issuing questionnaires that are completed outside a meeting with the results discussed in a trustee meeting.

How can Law Debenture Pensions Governance help with trustee effectiveness? 

Law Debenture Pensions Governance works directly alongside trustee boards to review current governance arrangements, identify areas for development, and support the implementation of improvements. The process is collaborative and practical, with the aim of helping boards build structures that are robust, agile, and suited to the long-term needs of their scheme and members.

To find out more about Trustee Effectiveness contact Helen Nguyen. You can also visit our pensions governance page to discover our other services.