CDC code in force: 1 August 2022
We will assess individual competence as well as the overall skills and experience possessed by the trustee boardTU1. We recognise that not all trustees will be experts, nor do they need to be, and we have set out below different levels of knowledge and experience that are more likely to satisfy us.
Where an individual has not previously been appointed as a pension trustee, or does not have sufficient experience through a previous appointment, we are more likely to be satisfied where:
- they have undertaken training to gain a basic level of knowledge before or at the time of their appointment as trustee. This training should cover what occupational pensions are, understanding DB and DC schemes, the role of the trustee, running a scheme, pension law basics and pension investment basics. This training could be undertaken through our Trustee Toolkit or alternative provision
- there is also a plan in place to build further knowledge
- they continue to develop the relevant knowledge, skills and experience throughout supervision
Where an individual has previously been appointed as a pension trustee we are more likely to be satisfied where:
- they have gained sufficient equivalent knowledge through previous experience as a trustee or in a senior role in a comparable scheme. By senior role we mean a role with accountability and responsibility for the day-to-day running of a scheme, including management, supervisory, technical or compliance oversight roles. By comparable scheme we mean an occupational scheme of similar size and complexity, but not necessarily a CDC scheme
- they have gained sufficient experience through the Association of Professional Pension Trustees (APPT) or Pensions Management Institute (PMI) trustee accreditation
- they continue to develop the relevant knowledge, skills and experience throughout supervision
For all trustees, we are more likely to be satisfied where:
- they have received scheme-specific training on CDC schemes. This should ensure that trustees understand what is being offered to members, the scheme design and key tasks in running the scheme
The trustee board must:
- demonstrate how competence will be maintained
- demonstrate how they will identify and address skills gaps and increase knowledge
In assessing the trustee board, we are more likely to be satisfied if the board:
- has the skills, knowledge and experience appropriate for governing their CDC scheme
- has a balance of skills and experience across its members
- has a range of diverse skills and experience in senior roles, to include pensions, trusteeship, investment, administration, actuarial work and communications
- has a plan for maintaining and developing the board’s knowledge
- has a plan to address any skill gaps
- has processes and standards to ensure that individuals subject to contract, employment or delegation themselves have relevant skills, knowledge and experience
- ensures that any service provider’s staff have the necessary skills, experience and integrity
Legal reference
TU1 Paragraph 3 of Schedule 1 to the Regulations