Most pension scheme trustees believe they are well-trained on The Pension Regulator’s (TPR) DE&I guidance but struggle with implementing processes due to time constraints, according to Barnett Waddingham.
According to a survey of 65 member-nominated/employer-appointed pension board trustees, 71 per cent of trustees said they find themselves constrained by time stating that they are too busy to research and learn about best practices, leading to 77 per cent of them seeking support from external advisers.
The survey also found that 65 per cent had undergone a few sessions of DE&I training, with 17 per cent participating in several sessions. Meanwhile, 83 per cent of trustees said they feel confident that they possess all the necessary knowledge about trusteeship, expressing no need for further training.
But nearly half or 45 per cent have a DE&I strategy that does not influence trustee hiring, contrary to TPR guidelines while 11 per cent are developing a strategy, 3 per cent plan to create one, and only 2 per cent lack any strategy or intention to develop one.
Barnett Waddingham principal in pension and executive management services Christine Kerr says: “It is encouraging to see that a majority of trustees feel confident in their understanding of DE&I guidance, but our findings highlight a critical gap between knowledge and implementation. Trustees must not only verbally commit to DE&I strategies, but also actively integrate these principles into their governance practices to foster truly inclusive and equitable pension schemes. This includes ensuring that DE&I considerations are embedded in trustee hiring, nomination, succession planning, and decision-making processes.
“Facilitated discussion sessions can be a great way to enable trustees to translate their understanding and beliefs on DE&I, providing a structured environment for trustees to address challenges, and share best practices while developing actionable plans that align with regulatory guidance.
“Also, to ensure clear and effective communications for members, it is vital for trustees to resolve DE&I integration issues. Our Barnett Waddingham teams are extensively equipped to help trustees navigate these challenges effectively, ensuring that DE&I initiatives are not only well understood but also successfully implemented.”
