Chair Of Trustee
Find out more about our Chair of Trustee services here. We understand that as Chair of a Trustee Board, it is no longer about chairing a meeting, it is about chairing the Scheme. Great Trustee Chairs not only provide leadership, strategic direction and efficient scheme management, they also have strong “interpersonal” skills. We believe it is central to our role to help develop other board members both as individuals and as a group.
Chair
of Trustees Board
The Chair of Trustee role is recognised as being pivotal to the successful operation of a Trustee Board. Providing leadership and strategic direction is combined with the need to take overall responsibility for governance. This includes ensuring controls for supervision and monitoring are in place.
Trustee Board members need to have the necessary knowledge and skills to ensure effective decision making. They need to manage relationships with other parties, including the Company and pension executive. As Chair of trustee, we help them to develop the necessary skills and provide expert support.
We believe it is important, as Chair of Trustee, to always be accessible and available, which is why we make sure our trustees have the time and support required to meet the needs of the Scheme, whatever may arise.
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Our Chair of Trustee Service
With an increasing number of potential journey outcomes the need for professional trustee support has never been greater.
Whether considering the use of “captives”, Master Trusts, superfunds, self-sufficiency or buyout with an insurance company, a professional trustee can help both the Trustee Board and the Company keep track of market developments.
They also can help manage projects effectively and ensure a robust audit trail is documented as part of the governance framework. This will ensure members, Company and trustees’ interests are protected, whatever the destination.
Setting a collaborative framework with the Company to help the Scheme run efficiently and protect the members’ interests we see as central to the role of the Chair.
In challenging economic times it is essential we understand the demands upon the Company and their future business plans. We work increasingly with overseas based corporations and our experience helps UK based Finance Directors in what can be difficult discussions with a parent company.
We believe it is part of our role as Chair of trustee to create a culture where people are expected to voice opinions and will be listened to. It often aids well informed decision-making to have a range of viewpoints.
This can help get the best from the Trustee Board and make sure all available skills are fully utilised. We look to build consensus, whilst helping the Trustee Board maintain a focus on delivering the agreed objectives .
Equality, diversity and inclusion (EDI) is central to good governance and decision-making. The most recent guidance from TPR has focussed on the role of the Chair in embedding an inclusive culture.
Diverse backgrounds bring different perspectives. Recognising that areas such as neurodiversity and complex socio- economic needs can affect even apparently homogenous memberships will help a Board to make better informed decisions.
There are many different forms of diversity which is why, in our role as Chair, we work closely with the Company to put in place a Trustee Board that best meets the needs of the pension scheme.
Trustee Boards retain overall responsibility for all aspects of the governance framework. However, making use of specialist advisers and providers, some with delegated responsibilities, is essential for a well run pension scheme.
Setting clear scope of services, strong budget controls and challenging advisers where necessary are all areas where a professional Chair of trustee can bring their wider market knowledge to the Trustee Board. This helps to make the most of scheme budgets and demonstrate value for money to the Company.
Chair of Trustee Frequently Asked Questions
What value does a professional Chair of trustee bring to the Board?
Depending on the existing skills and expertise of the Trustee Board, a professional Chair can add significant value by providing strong leadership and strategic oversight. Their role goes beyond merely presiding over board meetings; they play a critical part in guiding a pension scheme towards clarifying and delivering its objectives. They can share their knowledge from other Trustee Boards in the development of best practice. They often play a key role in developing and assessing other board members and in cases of conflicts or disagreements within the Trustee Board, or with the Employer, a professional Chair can facilitate resolution.
What is the typical term of a professional Trustee appointment?
There has been an increasing trend towards fixed term appointments, subject to review, with initial terms often set at 3 – 5 years. There can also be clauses around the number of terms that can be served. In general, we would suggest that for a Defined Benefit Scheme it is important to be able to support the Scheme through two valuation cycles to benefit from the expertise added by the professional Trustee and to give sufficient time for the Chair to understand the culture of the organisation.
What if I’m not happy with the Chair of Trustee performance?
As with any professional appointment, it is important to agree how the performance of the Chair is to be evaluated at outset. It is also important to put any dissatisfaction in context. A Chair of Trustees has clear fiduciary duties to the members and is subject to UK pension regulations. This means that there will be times when the objectives of the Trustee Board and those of the Company are not compatible and there will be a need for parties to differ.
Where there are concerns, we find that the first stage is to initiate an open and honest dialogue with the Chair, share the concerns and be specific about the aspects of their performance that are causing issues. It’s possible that the Chair may not be aware of the problems or may have a different perspective. Having a review process in place where the Company has an agreed meeting with a senior member of a professional Trustee firm, other than the Chair, can also give a forum for a neutral discussion.
Get Started With Our Chair Of Trustee Service
Our Chair of Trustee service provides your board with an experienced, impartial leader who can steer discussions, build consensus and keep your scheme firmly on course.
If you would like to get started with one of our chair of trustee’s, contact us today and we can talk through the next steps.
As well as our chair of trustee service, we also offer other professional trusteeship services such as sole trustee services and added expertise with committee and working group memberships
