Once perceived by many as a low-risk role, the role of a Pension Trustee has changed dramatically in the last ten years.
In the past, potential litigation has always tended to emanate from either the scheme members or the beneficiaries themselves. But additional sweeping powers held by regulatory authorities have significantly increased the liability of the trustee(s).
And following a number of high profile pension fund scandals, together with the creation of the Pension Act 1995, trustees found themselves not only more accountable for the operation of the schemes they controlled, but also personally liable for their actions.
“As a Trustee there is always someone breathing down your neck”
Very true! Professional advisers, such as scheme auditors and actuaries now have a statutory duty to “blow the whistle” to the regulatory authorities if they believe that the employer, scheme trustees or scheme advisers are not carrying out their responsibilities properly.
So what does a Pension Trustee Liability policy cover?
Well, in many respects, a Pension Trustee Liability policy works in exactly the same way as a Directors’ & Officers’ Liability policy, except that it covers the Mismanagement of a Pension Fund (or other employee/welfare benefit plans).
Policies can also include cover for :
Costs of official fact finding investigations
Costs of monetary awards by OPRA/Pensions Ombudsman
Emotional distress claims
Pollution defence costs for individuals
Costs of libel and slander claims
Theft of fund assets by any party
Towergate ghbc are well placed to provide any advice you may require in the arrangement and purchase of this cover, together with liability cover for many other forms of Trustee, for example, Charity and Educational.
Towergate ghbc is a trading name of Towergate Underwriting Group Limited and is authorised and regulated by the Financial Services Authority.
You can check our details on the FSA register (www.fsa.gov.uk/register) under Firm Reference Number 313250
