Pensions UK calls for proportionate, outcomes-focused approach to trusteeship governance reform

Pensions UK is calling for an outcomes-focused approach that strengthens trustee capability and encourages innovation, while avoiding unnecessary layers of prescription as the industry continues to consolidate.

Drawing on extensive engagement across our membership, the response highlights several priority areas:

• Proportionate, outcomes-focused regulation, with clearer prioritisation of systemic risks rather than new procedural requirements.
• Board level capability, supported by strong secretariat and executive functions, rather than rigid individual competency requirements.
• A sustainable trustee pipeline, with government and TPR improving transparency and access to trusteeship opportunities and a focus on continuous professional development (CPD).
• Evolution of professional and sole trustee models with proportionate supervisory oversight seen as more effective than structural reform.
• Member voice to inform trustee judgment, with the important roles of lay and Member Nominated Trustees (MNTs) to be supplemented with innovative new ways to gather member insight in very large, at-scale schemes.
• Administration as a core aspect of saver outcomes, and the need for high standards as consolidation increases reliance on fewer providers.

Zoe Alexander, Executive Director of Policy and Advocacy at Pensions UK, said:
“As parts of the pensions market consolidate, the role of many trustees is becoming more complex, and expectations are rising. Trustees operating in large scale schemes need the right support to enable them to deal with increasingly complex and impactful decisions.

“But any regulatory reforms must be outcomes-focused and target real risks, building on the strength of the current governance framework. Regulation should not be over-prescriptive and should encourage innovation, reflecting the diversity of needs across the system.

“We have an opportunity now to regulate the system in a way that gives Trustees the support but also the time and space they need to deliver the best outcomes for members, whatever type of scheme they are serving.”

Pensions UK will continue to work closely with DWP, TPR, industry partners and its 2,500 strong organisational membership to ensure reforms are effective, proportionate, and aligned with the long-term interests of savers.

Read the full response the consultation here.

Mark Smith, Head of Media Relations
020 7601 1726 | [email protected]

Cali Sullivan, Senior PR Manager
020 7601 1761 | [email protected]