Hymans Robertson has launched a governance service aimed at corporates running defined benefit (DB) pension schemes.
The consultancy says the service will help companies establish clearer oversight of their schemes and ensure appropriate people are involved in strategic decision-making, particularly as schemes move towards endgame planning.
It is intended to support more consistent governance policies across organisations and strengthen collaboration with trustees. The firm also notes the service could help corporates demonstrate to The Pensions Regulator (TPR) that governance arrangements and trustee effectiveness have been considered in meeting scheme members’ needs.
Hymans Robertson head of corporate governance Laura Andrikopoulos says: “TPR has rightly recognised that the pensions landscape is being challenged by domestic and global economic issues. Within this new pensions landscape, corporates must be able to demonstrate that their governance arrangements are robust and that plans are in place to address any areas of concern. It is also paramount to remember that just because a governance structure is in place, it doesn’t mean that it will remain the right one for the scheme. With this in mind, Corporates must be prepared to revisit their governance on a regular basis to ensure what is in place remains fit for purpose.
“To help with this, TPR’s areas of focus provide a useful starting point. These cover areas such as conflict management, separation of decision-makers from advisers, remuneration models and quality of decision-making.”
She adds: “DB Pension scheme decisions are becoming much more complex, particularly as schemes head towards endgame and now with the added complexity of surplus management. With increased regulatory scrutiny, especially on trustee appointments and oversight, the ability to demonstrate robust, fit-for-purpose governance is critical. Aligning pension scheme governance with wider corporate governance principles not only ensures compliance, but also builds resilience and trust in a rapidly evolving environment.”