Pension Scheme Trustee

A Pension Scheme Trustee is an independent person given the responsibility in law for keeping an eye on how company pension funds are being managed on behalf of employees.

The trustee may be a layman - he/she is a sort of referee who's there to make sure the investment managers (often City fund managers) are doing a reasonable job and to ensure the funds are being looked after in a sensible way.

The trustees are the legal owners of the pension fund and are obliged to look after the assets on behalf of the beneficiaries.

Trustees will be a mixture of management appointees and scheme members. In the wake of the Maxwell affair pensions regulations were thoroughly reviewed and reorganised under the Pensions Act 1995.

The Act also sets out who can and cannot be a trustee of the pension scheme and what their duties are.

See Also: Pensions Centre

Last Updated: February 2008 © Moneyextra.com

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