EU compromises on trustee knowledge requirements

Topic:

Legal & governance

Date published:

Friday, 12 December 2014

There’s been a Christmas present, of sorts, from the EU to lay pension scheme trustees.

The draft revised EU Pensions Directive (IORP II), issued in March 2014, included knowledge requirements so strong the future of lay pension trustees was put in doubt. There has now been a change in the compromise text and this means trustees will no longer be required to have relevant professional qualifications.

Instead, the emphasis now falls on a scheme’s trustee body as a whole to ensure their qualifications, knowledge and experience are ‘collectively adequate’ to perform the duties required under the IORP. This is a welcome change that makes it easier for lay trustees to continue in their role, helping us here in the UK to maintain our commitment to member-nominated representation on a trustee board.

The new wording says trustees must also be of ‘good repute and integrity’, but that’s simply common sense!

Gillian Graham - Scheme Manager

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