Trustees should be required to take professional exams to drive higher standards across the industry according to the president of the Pensions Management Institute (PMI).
Speaking at the organisation’s DC and master trust symposium, Girish Menezes said the UK pension system was entering a “new era of complexity” that requires higher professional standards from those responsible for safeguarding savers’ futures,
He said these changes were being driven by the rapid growth and consolidation of DC schemes, which had fundamentally changed what good trusteeship looks like.
Menezes said the role of trustees was evolving with governance, administration, technology and member outcomes now sitting firmly at the centre of decision‑making
He said: “We now have trustees overseeing schemes with millions of members and billions of pounds in assets. Capability, and professional competence remain essential, and in addition we must push for greater diversity on trustee boards.
“We do not allow people to practise as accountants, lawyers or doctors without recognised qualifications. Trustees are responsible for decisions that shape people’s retirements for decades without a mandatory requirement to follow an equivalent professional framework.
“That position is becoming increasingly difficult to justify, which is why we and others continue to discuss all options with government and regulators.”
DC provision now dominates the system, with nearly 33 million members and the vast majority of assets concentrated in large master trusts. That consolidation, Menezes said, brings benefits of scale but also raises the stakes if governance falls short.
He added: “Even well‑funded schemes can fail members if governance and administration are weak. That is why rising regulatory expectations around trustee competence are essential and inevitable.
“Good trustees today must be able to lead and challenge boards, understand operational and technology risk, oversee data quality and value for money, and communicate clearly with members. Training, qualifications and continuous professional development are no longer optional. They are fundamental.”
As part of its drive to raise standards across the industry, the PMI also confirmed that public applications are now open for its flagship trustee accelerator programme (TAP), a sector‑wide initiative designed to build a new pipeline of diverse and highly capable trustees.
Backed by some of the UK’s largest master trusts, TAP is designed to identify individuals with strong judgement, leadership and challenge who may not follow a traditional pensions career route and equip them with the skills needed to operate effectively as trustees in today’s schemes.
