The role of a pension scheme Trustee

20 February 2025

The Svenska UK Retirement and Death Benefits Scheme is currently looking to appoint three Member Nominated Trustees due to the appointment of Caspar Mann as an Employer Nominated Trustee and the expiry of the five-year terms of Paul Brooksbank and Andrew Quicke in Q1 2025. Under the Trustee selection arrangements, active and pensioner members of the Scheme may propose/second an individual for the position of Member Nominated Trustee (MNT). Potential applicants are not required to have any previous experience but must be willing to learn and to participate in any necessary training. Please note that both Paul and Andrew will be re-applying for the positions available.

The role of a pension scheme Trustee

The work of a Trustee of an occupational pension scheme is of great importance. Millions of people in the UK are receiving pensions from such schemes and many millions more have growing entitlements which will be payable in the future.

The beneficiaries of your Scheme will look to you (and your fellow Trustees) to make sure that the Scheme is run honestly and well. To help you in your role, expert help and advice is available to you on the technical matters involved.

No prior experience is required. You will, however, need to grasp basic principles and their application because the ultimate responsibility for the Scheme lies with the Trustees. Issues will arise that only the Trustees can settle after taking appropriate professional advice. You will be required to complete the Trustee Toolkit with six months of appointment and to undertake training and evidence your knowledge and understanding on an ongoing basis. The Pension Regulator Self-Assessment checklist will be one way in which to evidence this.

The basic obligation of the Trustees is to exercise a reasonable standard of care on behalf of the beneficiaries. 

Formal documents exist, such as the Definitive Trust Deed and Rules and interim deeds, which govern the detailed workings of the Scheme. The Trustees must act in accordance with these documents, Trust law, and legislation set out under UK law.

As a Trustee of an occupational pension scheme your duties would be summarised as follows:

  • To act in line with the trust deed and rules, within the framework of the law.
  • To act prudently, conscientiously and honestly with the utmost of good faith.
  • To act in the best interests of the beneficiaries and strike a fair balance between the interests of different classes of beneficiaries.
  • To ensure the timely payment of contributions, good record keeping and compliance with other legislative requirements.
  • To take expert advice on technical and any other matters, which you do not understand.
  • To take reasonable care and act prudently when investing the assets of the trust.
  • To develop your understanding and knowledge of the role of a Trustee.

The duty to act in the best interests of the beneficiaries is very important in the context of pension scheme investment, where ‘best interest’ is normally taken as meaning best financial interests. As far as possible the Trustees must put aside personal views on the ethical or political aspects of a particular issue.

The Trustees’ duty is to serve all the different classes of beneficiary impartially and not act as a representative of a particular group or interest. Nor, by the same token, is a Trustee a negotiator, particularly between members of the pension Scheme and the Employer. There may well be negotiations on pension benefits between representatives of the Employer and the workforce, but the Trustees’ meeting is not the arena for these.

If a Trustee carries out some act (in relation to the trust) that is not authorised by the terms of the trust (or the law) or fail to do something which should have done under the same provisions, then this is called a breach of trust. If it causes a loss to the fund, the Trustee could be personally liable for the loss.

You will be assigned to at least one subcommittee, which will review a specific area of responsibility.  Subcommittees will assess compliance with regulation and make recommendations to the wider Trustee board as appropriate.

 

What is the process for becoming an MNT?

In accordance with UK pensions legislation the Trustees of the Scheme have agreed with Handelsbanken AB Publ (“the Employer”) the arrangements by which Member Nominated Trustees of the Scheme are to be elected.

The process

  • There will be eight Trustees, of which three will be MNTs.
  • The remaining five Trustees are appointed by the Employer.
  • Only Active members and current Pensioners are eligible to nominate MNTs.
  • Deferred Pensioners are not able to nominate MNTs, however they can be nominated by an Active member or current Pensioner.
  • Non-members may be nominated, but only with the agreement of the Employer.
  • Nominees must be proposed and seconded and the nominee must give their written consent that he or she agrees to be nominated.
  • Prospective nominees will be provided with further information on the role of a Trustee.
  • If there are more than three nominees, each nominee will be expected to provide a written précis of their suitability for the role of Trustee.
  • If there are more than three nominees, MNTs will be chosen by a selection panel – all nominees will be invited to meet with the selection panel to discuss the role of a Trustee (nominees will not be expected to have any prior experience, however they must be willing to learn and attend any necessary training).
  • The MNT’s term of office is five years.
  • If an MNT leaves the company, they may need to resign their position as a Trustee.
  • If there are any vacancies following the completion of this nomination process the Trustees will undertake the next nomination exercise 12 months after the completion of this exercise.
  • The MNT procedures are reviewed periodically to ensure they remain appropriate.
  • All Trustees have the same duties and responsibilities.
Will the Bank support me?

The Bank will:

  • Allow you time to attend Trustee meetings. You will be expected to attend at least three meetings a year, which will usually be at the UK Head Office at 3 Thomas More Square, London, although some meetings will be held virtually.
  • Provide for your training needs. You will be expected to attend regular external training courses and keep up to date with pensions issues (e.g. through the use of The Pension Regulator’s website).
  • Provide you with information required to administer the pension scheme. Some of this information will be of a sensitive or confidential nature, which you will not be able to discuss outside of the Trustee meetings.
  • Reimburse you for any “out of pocket” expenses incurred.
Where can I get more information?

The Pensions Regulator’s website provides a wealth of general information on the role of a Trustee, as well as providing specific guidance.

1. The document “Guidance for Trustees” provides some basic information on

  • Legal background of trusts
  • Appointment and removal of Trustees
  • Working with the employer
  • Your rights as a Trustee
  • Fiduciary duties and responsibilities
  • Liability and protection of Trustees
  • The role of advisers
  • Funding and investment
  • Documentation and record keeping
  • The Trustee Toolkit. This is a free, online learning programme and training tool that covers many of the questions with which a Trustee may be faced (trusteetoolkit.thepensionsregulator.gov.uk). Trustees are expected to complete the toolkit within six months of appointment.

2. Codes of Practice and associated documents provide guidance on topics that The Pensions Regulator considers most important.

If you are interested in becoming a Trustee of the Scheme you should complete the form and return to Handelsbanken no later than 31 March 2025.

Please note that you must be proposed and seconded by two other Scheme members, who must be active and/or pensioner members.

Complete the form

You must return the completed form to Katy Thomas either by post or email, using the details below:

Katy Thomas
Handelsbanken
3 Thomas More Square
London
E1W 1WY

katy.thomas@handelsbanken.co.uk

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