The vast majority (86%) of pension scheme trustees are determined to continue in their roles, despite the intensifying pressures the economic turmoil has placed on them, according to Aon Consulting, a leading employee risk and benefits management firm. Only a very small handful (3%) said the financial crisis had made them reconsider their positions as trustees.
Aon Consulting carried out a survey in February this year, polling 117 lay trustees of defined benefit (DB) schemes of various sizes. The trustees were asked a variety of questions about the concerns and fresh challenges that they and their pension schemes faced as a result of the economic turmoil.
A significant proportion of trustees (91%) were concerned by the impact of the economic turmoil on their pension scheme with over half (52%) saying they were ëvery concernedí, while 39% were ësomewhat concerned.í This sentiment was broadly similar regardless of scheme size.
Those newer to their trustee role had greater fears about the impact of the economy than those with a decadeís experience. Of those with less than two yearsí experience in the role, over half (58%) were ëvery concerned,í while the rest (42%) were ësomewhat concerned.í Those with over ten yearsí experience were more sanguine, with nearly a quarter (23%) saying they remained ëneutralí on the impact the economic turmoil is having on their schemes.
Despite the greater anxieties expressed by the less experienced trustees, their appetite for the role has not been dented by recent economic and financial turmoil. More than nine out of ten (94%) of those with less than two yearsí experience affirmed their commitment to trusteeship within the survey. In contrast, those with over 10 yearsí experience were less unanimous with only 82% declaring their absolute commitment.
Commenting on the survey results, Milan Makhecha, consultant and actuary at Aon Consulting, said: ìThe current crop of lay trustees are a hardy bunch who will not allow mounting challenges to obstruct their duty to do what's best for both current and future pensioners.
ìRecent events have added to the complexities of their role, including the need to monitor employer covenants and funding levels and deciding whether to ask for more cash from struggling sponsors. Our survey shows that, despite these challenges, lay trustees remain calm and focused on steering their schemes through volatile times.î
Recession pressures not deterring pension trustees
86% of trustees keen to remain in role despite facing tougher challenges as a result of economic turmoil
