What is the role of the Trustee?
The role of the Trustee is to invest the SCPF’s assets, administer the trust in line with the Trust Deed and Regulations, and pay the benefits. The Trustee must always act fairly between all classes of beneficiary.
The Trustee’s duties are summarised below:
- Manages the day-to-day running of the SCPF in line with the Trust Deed and legislation (for example, paying benefits and collecting contributions).
- Determines the investment strategy and is responsible for the investment of the SCPF’s assets.
- Determines what level of assets is required to meet the SCPF’s liabilities by undertaking regular valuations.
- Agrees with the Company the rate of Company contributions to be paid to the SCPF. Appoints professional advisers to help carry out the Trustee’s duties as efficiently and effectively as possible.
- Communicates with members in line with legislative requirements and keeps them informed about their pension.
In practice the Trustee delegates the day-to-day running of the SCPF to the Trustee Service Unit, and the investment activities to the Investment Manager. The Trustee also appoints external professional advisers to help manage the SCPF. The Trustee monitors the activities carried out by others on its behalf.
There are at least 4 Trustee Board meetings each year, where the performance and administration of the Fund is reviewed and discussed. There are also 2 Committees of the Board, each acting in an advisory capacity. These are the Investment Committee and the Technical and Communications Committee. Each Trustee Director is a member of at least one Committee. These Committees also meet at least 4 times each year.
Can I be a Trustee Director?
Yes, the Trustee Board is made up of 8 Trustee Directors with 4 appointed by the Company and 4 appointed by members and dependents 'Member-Nominated Directors'. The 4 Member Nominated Directors are made up of 1 current employee and 3 deferred/pensioner members.
The position of a Trustee is a responsible one and should not be taken lightly, but it can also be a worthwhile experience. For more details see the Introduction to Trusteeship.