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Home / GOVERNANCE · Module 5: Scheme Documentation and Governance in Practice
Mapped to the published PMI Award in Pension Trusteeship syllabus across 22 units and 91 topics

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.

Questions
90
Units
5
Topics
19

What’s in it.

5 units

Sample questions

3 of many

A few questions from this module, with the answer and a full explanation. The complete bank is available when you start practising.

  1. A member requests to see the minutes of a meeting where a discretionary decision affecting them was made. What is the general trust-law position?

    • Trustees are not generally required to disclose documents revealing their deliberative reasoning
      Correct answer
    • Trustees must disclose the minutes only if the member is over age 55
    • Trustees must disclose the minutes if the sponsoring employer consents
    • Trustees must disclose the minutes once the scheme year ends
    Explanation

    Under the Londonderry/Wilson line of authority, trustees are generally not required to disclose documents, including minutes, that reveal the reasoning behind a discretionary decision. Key takeaway: general trust law protects the confidentiality of trustees' deliberative reasoning.

  2. Which term describes a person who is eligible to join a scheme but has not yet become an active member?

    • A deferred member
    • A pensioner member
    • A pension credit member
    • A prospective member
      Correct answer
    Explanation

    A prospective member is someone eligible to join the scheme, or a category of it, who has not yet become an active member, including those within an automatic enrolment postponement or waiting period. Key takeaway: eligibility to join is not the same as membership; a prospective member has not yet started accruing benefit.

  3. Why might draft minutes carry limited evidential weight compared with approved minutes?

    • They cannot legally be shown to the trustees who attended
    • They are prepared by a different person than approved minutes
    • They have not yet been formally confirmed as an accurate record
      Correct answer
    • They are not kept as part of the scheme's records at all
    Explanation

    Draft minutes are provisional until confirmed, often with corrections, at the following meeting, so they carry less weight as evidence than the formally approved version. Key takeaway: lack of formal confirmation is what limits a draft's evidential weight.

Frequently asked questions

4 questions
What 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.