The Pensions Administration Standards Association (PASA) has published an Administration Governance Trustee Checklist in response to The Pensions Regulator’s (TPR) drive to improve the governance of pension schemes.
TPR has identified that trustees should focus on the key areas which are vital for good member outcomes, including administration and record keeping.
PASA, an independent body dedicated to driving up standards in pensions administration, has produced the checklist as an additional tool to help trustees to evidence and action appropriate levels of governance over their administration provider.
Fergus Clarke, executive director of PASA, said: “The Pensions Regulator’s drive to improve the overall governance of pension schemes includes administration.
“We have prepared this checklist to assist trustees to manage their relationship with their administrator and to identify if there are any areas which need further attention. Designed to be an easy and at a glance way for trustees to undertake a governance review of their administration function, we have set out the questions people should be asking their provider to assess suitability and highlight any problem areas that need addressing.
“In cases where trustees pinpoint any areas of concern, we advise engaging with the provider to first air concerns and assess how significant a risk this presents to member outcomes, before agreeing corrective action to mitigate this. Trustees who are able to check off all points positively can be confident that they are delivering good governance in relation to the PASA standards of administration and record keeping.”
Lesley Titcomb, chief executive of TPR, said: “The Pensions Regulator welcomes the development of tools like this, which provide ways for trustees to assess their current levels of governance and set targets for improvement.
“As part of our work on 21st Century Trusteeship we would like to encourage trustees to regularly assess their board effectiveness and we welcome initiatives developed by industry to support TPR’s drive to improve governance.”