Although often unpaid, trustees are expected to understand and keep up to date with the laws and investment principles of their schemes. They must challenge their advisors and employers when they need to. Failure can result in fines or other penalties against them and the company.
Pension Trustee Liability covers defence costs, awards and damages of trustees and individuals administering a pension scheme or any employee benefit or welfare plan. It also covers the Company for risks assumed via indemnities and exoneration clauses.
The Pensions Regulator’s aim to raise the standards of trustees’ pension governance with a clear code of practice, is backed by legislation and the Pension Act requires trustees to have an understanding of trust law and investment principles. They must keep up to date with regular training and it’s up to trustees to demonstrate to the Regulator that they’ve met the required legal standards.
The Pensions Regulator can levy fines, disqualify trustees and “name and shame” trustees. It can demand information from trustees, employers, administrators - anyone it thinks might hold relevant information. It can inspect premises, seize and copy documentation, and it is a criminal offence if anyone fails to co-operate.
Pension Trustee Liability is suitable for any company operating an occupational pension plan as well as company or employee benefit plans.
See our Risk Appetite
Although often unpaid, trustees are expected to understand and keep up to date with the laws and investment principles of their schemes. They must challenge their advisors and employers when they need to. Failure can result in fines or other penalties against them and the company.
Pension trustee liability insurance is designed to meet defence costs, awards, damages, and investigation costs of anyone like trustees, secretaries or administrators involved in running the pension scheme who are accused of mistakes or oversights in their duties.
Pension trustee liability insurance also provides cover for the company and its pension plan. That’s because while in theory the trustee may be personally liable, in practice the risk is often carried by the employer or the pension plan by indemnities and exoneration clauses.
CorporateGuard Pension Trustee policyholders are entitled to call on the services of the Pension Crisis Helpline
The Pension Crisis Helpline is provided at no extra cost within all CorporateGuard Pension Trustee policies.