Pension scheme risk management is the focus of a new regulatory campaign.
The Pensions Regulator has unveiled plans to improve governance and administration of scheme assets, by highlighting the qualifications of trustees.
According to a statement from the organisation, the trustees must have the "right skills" and get the "right people" to run the funds, as well as having the "right processes" to mitigate against risks.
A poorly-run pension fund can result in participants retiring on far lower incomes than they had initially expected.
This would in turn increase the likelihood of the retirees in question using equity release plans in order to supplement their finances.
The Pensions Regulator’s statements were welcomed by the Trades Unions Congress (TUC).
Brendan Barber, general secretary of the organisation, said: "Trustees play a vital role in the governance of scheme assets and this initiative seeks to support trustees in fulfilling this role effectively.
"The TUC believes that member nominated trustees bring an invaluable member perspective to the good governance of pensions and we continue to campaign for their representation on trustee boards to be raised to 50 per cent."
Posted by Claire Ford
