Why appoint an Independent Professional Trustee
and other FAQs
1. Why appoint an independent professional pension trustee?
Schemes appointing a professional trustee consider they gain access to first-hand experience of the latest regulatory developments and The Pensions Regulator’s thinking. They will work alongside someone familiar with the subject matter and can expect to gain insights on how other schemes have approached similar issues and challenges.
A professional trustee has a good view of the advisory market and can help obtain cost effective advice from its actuarial, investment, legal and covenant team. They will have contacts in the market and be able to help co-trustees get appropriate advice and guidance, for example on covenant, funding or investment issues.
They are in a position to help the scheme move projects forward between trustee meetings as part of working groups or sub-committees, for instance valuation discussions with employers can be progressed, maintaining momentum.
A professional trustee can form a helpful bridge between the executive function of the employer and the trustee board, can be used as a sounding board, and can act as Chair or assist the Chair in discussing issues with the employer and sponsor.
A professional trustee will be adept at getting the best from a trustee board, making the best of collective experience and skills to deliver robust decisions. Generally they help improve the experience and expertise of the trustee board, provide continuity and better equip them to manage the challenges of delivering the pension benefits.
2. What is different about LawDeb Pension Trustees?
Law Debenture follows a 'salaried model' of professional trusteeship.
We believe that this offers clients the greatest value by increasing the insight shared amongst trustees.
In addition, this approach creates a supportive and engaging environment in which trustees can operate.
LawDeb Pensions Trustees is a business which is part of the wider The Law Debenture Corporation – a FTSE 350 £600M investment trust. We have 18 trustee directors from a wide variety of professional backgrounds (governance and pension management, accounting, legal, actuarial, investment).
We are professional trustees for over 220 schemes with assets ranging from £50M to £50bn. and have been in this business since the 1980s.
All of our trustee directors are salaried and there is a collegiate information sharing culture. We have regular training sessions and contact with many firms on the latest product updates, legal precedents and investment ideas.
Each LawDeb client has a lead director and a cover director assigned to the scheme who will regularly discuss scheme issues. They also have recourse to the wider expertise of the LawDeb team.
We operate as trustee chair, members of trustee boards, trustee committees or as a sole trustee in certain cases. We believe that clients get significant benefits from using us given the breadth of experience in the team and the depth of our knowledge in the market, all of which can be accessed through the lead director.