Trustee training

Our approach to training is flexible and scheme-specific.

We use modules that can be combined and tailored as necessary, to give you what you need for your particular scenario.

Our training modules comprise:

What’s the issue?

The DB pensions landscape includes a large number of stakeholders and regulatory bodies, who have different powers and responsibilities.

What will the training cover?

This training will provide an introduction to the DB pensions landscape, set out the key stakeholders, and the roles and powers of the main regulatory bodies (including the Financial Conduct Authority, Pension Protection Fund and Pensions Regulator).

What’s the issue?

The Pensions Regulator (TPR) identifies that understanding the strength and durability of the employer covenant provided by a sponsor to its scheme is key to the security of members’ benefits.

What will the training cover?

An introduction to employer covenant, how to assess it (both technically and practically) and TPR’s expectations of trustees when assessing covenant.

What’s the issue?

A scheme’s triennial valuation provides trustees with an opportunity to review their objectives, investment strategy and funding arrangements to reflect their understanding of the covenant.

What will the training cover?

The training will outline how TPR expects trustees to engage with their sponsor to update their understanding of the covenant, how to take proportionate and effective professional advice and how to incorporate this into a valuation timetable.

What’s the issue?

TPR encourages trustees to integrate setting of objectives and strategies for their scheme with their understanding of their sponsor’s covenant and its ability to support the risks in the scheme.

What will the training cover?

The training will include an overview of TPR’s guidance for trustees on IRM, how the scheme’s strategy can be changed to reflect the covenant, and the questions trustees should be asking themselves when taking an IRM approach.

The training can also include use of PensionSim, our award-winning IRM educational tool that helps trustees understand how their scheme may respond to changing economic conditions and what this could mean for their sponsor.

What’s the issue?

Over the long life of a pension scheme’s liabilities (or even between triennial valuations), the employer covenant may change significantly – this could mean that the strategies set by the trustees may no longer be appropriate.

What will the training cover?

The training will cover why monitoring the covenant is important, the factors affecting what level and frequency of monitoring will be appropriate in different circumstances, how it should integrate with wider scheme funding monitoring and how the trustees can respond if the covenant changes.

What’s the issue?

M&A activity, refinancing and many other types of corporate event can have a material and immediate impact on the covenant and trustees must ensure that the scheme remains appropriately supported. This can often include a Flexible Apportionment Arrangement (“FAA”) to transfer pension obligations to a different legal entity.

What will the training cover?

“Type A” events, the requirements of the FAA Funding Test, TPR’s expectations of trustees to obtain mitigation when a corporate event affects their sponsor and how trustees can put plans in place to respond quickly to protect their members.

What’s the issue?

As the use of insurance contracts by pension schemes increases (either through a buy-in or buy-out), trustees are focussing more on the strength of the replacement covenant offered by insurers.

What will the training cover?

The training will include an introduction to the regulatory framework the insurers operate under, the key risks that they face, and how differences between insurers’ risk profiles could impact how you assess their pricing proposals.

What’s the issue?

When a sponsor becomes financially stressed or distressed, trustees will be competing against other creditors to secure as much value as possible for their members.

What will the training cover?

Common causes of sponsor distress, the scheme’s claims in insolvency relative to other creditors and stakeholders, and the role of the Pension Protection Fund in such a scenario.

Please get in touch with us to find out how we can help:
E: enquiries@lincolnpensions.com
T: +44 (0)20 3889 6300

 

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