The Trustee, through the Trustee Directors, has overall responsibility for the day to day running of the Scheme. Each Trustee Director, including an MNTD, has the same duties towards all beneficiaries of the Scheme. It is not correct to say that an MNTD is only responsible for safeguarding the interests of the members of the constituency they were selected from – the same duties extend to all members whether Active, Deferred or Pensioner members.
The Trustee Directors’ primary role is ensuring that the Scheme is run in accordance with the Trust Deed and Rules which govern it, so that members receive the benefits to which they are entitled.
The Rules of the Scheme clearly set out what benefits are to be provided to members and the powers the Trustee has in relation to the Scheme.
The Trustee must also meet legal requirements relating to the Scheme.
These include ensuring that:A duty is something the Trustee Directors must do. Some duties are specific (such as those set out in the Trust Deed and Rules of the Scheme), others are more general in nature (such as those required under general trust law principles).
Although it is a lot to comply with, Trustee Directors are given support and guidance in their role, both from the Pensions Team and the Trustee’s professional advisers.
The role requires a considerable investment of time in preparing and attending meetings and attaining and maintaining the required level of understanding. This is something to take into consideration and therefore we suggest that you discuss it with your line manager before applying. Being an MNTD of a large, respected pension scheme comes with a lot of responsibility and requires a high level of conscientiousness but it is an extremely rewarding and satisfying role.
If you put yourself forward as an MNTD you must be prepared to attend several Trustee meetings each year. You will also be expected to take an active role in the Trustee’s various Committees and Working Parties, and you will receive training to give you the required knowledge and understanding about the laws on trusts and pension schemes. The table below gives an indication of the amount of time you could expect to spend in the role in an average year (you should also bear in mind that you will need to allow additional time for travel as meetings will be held in London):
RESPONSIBILITIES |
MEETINGS PER YEAR (APPROXIMATELY) |
AVERAGE TIME (MEETINGS AND PREPARATION) |
|---|---|---|
| Trustee Board Meetings | 5 | 6+ hours each |
| Membership of Working Parties (average 3 Working Parties) | 3 (per Working Party) | 4+ hours each |
| Committee Meetings | 4 | 5+ hours each |
| Training | 2 | 4 hours each |
| Reading and research | Ongoing | 4+ hours per month |
The Pensions Act 2004 requires trustees to be conversant with documents in relation to their scheme and have knowledge and understanding of the laws relating to trusts and pension schemes, the principles of funding and investment and such other matters as may be set out in legislation. Therefore, Trustee Directors must be willing to familiarise themselves with, for example, the Scheme’s Trust Deed and Rules, and to take steps to gain sufficient knowledge and understanding as is required by the legislation.
Clearly, an amount of learning is involved when taking up the position as a Trustee Director. Formal training is provided to assist all new Trustee Directors – whether MNTDs or Trustee Directors appointed by the Company – which may include one to one sessions with advisers to the Trustee and attendance at external courses.
In addition to induction training, formal training is provided to all Trustee Directors on an ongoing basis. All Trustee Directors are required to keep themselves up to date with topical pension issues which will inevitably require setting aside time for personal study from time to time. The Pensions Team and the Trustee’s professional advisers are available to lend support and guidance where necessary.
