APT·ModuleGOVERNANCE
Module 5: Scheme Documentation and Governance in Practice
Module 5 works through the documents a trustee board actually receives and has to be able to read. It starts with the trust deed and rules and the balance of power between the employer and the trustees, then covers the classes of member a scheme has, the benefits offered and when they become payable, scheme booklets and other member communications, and awareness of pension scams. It goes on to the actuarial valuation report, the schedule of contributions and payment schedule, the annual report and accounts and significant contracts covering scheme assets, then to trustee minutes, stewardship reports, internal control reports, trustee-approved procedures and the statement of compliance. The module closes with the practical business of running a board through a corporate trustee’s constitution, a scheme business plan and the job descriptions for the chair and the other trustees.
What’s in it.
5 units- Unit 01Coming soon · 3 topics
- Unit 02
Unit 5.2: Membership, Benefits and Member Communications
Access: PremiumComing soon · 4 topics - Unit 03Coming soon · 4 topics
- Unit 04
Unit 5.4: Governance, Control and Stewardship Documentation
Access: PremiumComing soon · 5 topics - Unit 05
Unit 5.5: Running the Trustee Board
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Frequently asked questions
4 questionsWhat is the trust deed and rules?
The trust deed and rules is the governing document of an occupational pension scheme. It establishes the trust, provides for the appointment of trustees, sets out the benefits and the contributions, and defines the powers and discretions held by the trustees and by the employer. It is read alongside pensions legislation, which overrides it in places.
What goes into a scheme annual report and accounts?
The annual report contains the audited financial statements for the scheme year, the auditor’s statement about contributions, a trustees’ report covering membership and any scheme changes, and an investment report. A defined benefit scheme also includes actuarial information.
Why do trustee meeting minutes matter?
Minutes are the record of what the trustees decided and why. They evidence that a decision was taken properly, with the right information and advice in front of the board, which matters if the decision is later questioned by a member, by the employer or by the regulator.
What is an internal control report?
Schemes rely on administrators, investment managers and other providers, and an internal control report gives trustees independent assurance about the control environment at those providers. Trustees use it as part of monitoring administration risk rather than as a substitute for their own oversight.