In this issue:

• OPDU Annual Meeting 2016

• Update from the AMNT

• Calendar of events• OPDU Joins forces with the PMI

OPDU Annual Meeting 2016

Speaking at OPDU’s annual meeting,Mark Boyle, Chair of the PensionsRegulator said that 2015 had been anextraordinary & tumultuous year forpensions which had required the regulatorto react quickly and effectively.

Mark covered three key areas in hisaddress: the 21st century trustee; thewider pensions’ environment and thepriorities for the year ahead.

Mark was followed by Chris Curry, adirector of the Pensions Policy Institute, anindependent research based charity withthe aim of informing the policy debate onpensions and retirement income provision.Chris focused on the impact of pensionreform and what it will mean for employerswho had been the driving force for pensionprovision in the last forty to fifty years.

Terry Faulkner, OPDU’s Advisory CouncilChairman, highlighted notabledevelopments in the last twelve monthswhich included the merger of leadunderwriter ACE with CHUBB.

Lifetime cover had also been madeavailable for wind-up and discontinuancecover for the first time and a further newdevelopment was the inclusion of missingbeneficiary cover.

Terry concluded his review by reportingthat 15 new members had joined duringthe year and also took the opportunity tohighlight trends in claims and notifications.

Following a lively question and answersession, a reception was held with ReedSmith’s offices showcasing the everchanging London skyline.

OPDU The Pensions Insurance SpecialistProtecting Trustees, Schemes, Members & Employers

OPDU Ltd 90 Fenchurch Street London EC4M 4ST E: enquiries@opdu.com T: (0)20 7204 2400

OPDUIS MANAGEDBY THOMASMILLER

www.opdu.com

NEWSLETTER July 2016

“2015 has been an extraordinary& tumultuous year for pensions”.

OPDU Ltd 90 Fenchurch Street London EC4M 4ST E: enquiries@opdu.com T: (0)20 7204 2400

OPDUIS MANAGEDBY THOMASMILLER

www.opdu.com

OPDU NEWSLETTER July 2016

Update from theAssociation of MemberNominated Trustees

Two events in May 2016 shone aspotlight on the burden of responsibilitythat trustees of occupational pensionsshoulder. Member nominated trusteesare the voice of rank and file pensionscheme members in the governance oftheir schemes. The Association ofMember Nominated Trustees is thelargest representative body of theseMNTs. OPDU and other providers ofpensions’ services support what we do.I pay tribute here to the encouragementthat they give to us.

In the first event of May 2016, a Houseof Commons Select Committee startedan inquiry into the British Home Storespension scheme. The PensionsRegulator and the Pensions ProtectionFund both made claims in theirtestimonies about BHS. The pensionscheme trustees later challenged theseclaims. They said: “Contrary to theimplications given during the oralevidence session, the trustees workedopenly and collaboratively with theregulator since the summer of 2014”.Their chairman added: “In particular, Iwould like to make clear to thecommittee that the trustees notifiedand kept the regulator apprised ofdevelopments relating to the sale of thecompany and shared information withthe regulator at all stages of the saleprocess”.

The second event of May 2016 was areport that savers’ pension pots aresubject to hundreds of hidden charges,in addition to the headline managementfee. This could result in more than athird of their nest egg disappearingduring the lifetime of an investment.Judith Donnelly, partner with SquirePatton and Boggs, a legal firm, said:“Our clients, who are pension schemetrustees, frequently come up against abrick wall when they ask assetmanagers for cost information”.

The Association of Member NominatedTrustees (AMNT) is a not for profitorganisation supporting membernominated trustees, member nominateddirectors, and employee representativesof UK based pension schemes in theprivate and public sectors. We have600 members, representing pensionschemes with assets undermanagement of around £600 billion, asignificant slice of the UK occupationalpension sector. Our web site can befound at www.amnt.org We believe thatthe framework for pensions in the UKis complex. Trustees face an increasingburden, as the events of May 2016confirm. More support should be madeavailable to member nominees inparticular.

Member nominees are important.They share responsibility for big sumsof money. They provide the intimate linkbetween a pension scheme’sgovernance and its membership. Therole is a challenging one, too, as theyoften find themselves having to balancetheir duties with regular day to daycommitments. AMNT believe thatmember nominees deserve recognitionand support through their owndedicated association.

The AMNT takes the view that thereare three main constituencies involvedin pension provision. First, there are thescheme members, who havecontributed during their working lives.Their representatives have ourparticular attention. Then there are thesponsoring employers, who makepayment also. Third, there are themanagers, consultants and serviceproviders whose performance affectsthe ability of schemes to pay theircommitments. We welcomesponsorship from this last group tosupport our activities. OPDU protectspension schemes by providing uniquePension Liability Insurance cover totrustees, sponsoring employers andadministrators.

David Weeks, Co-Chair, AMNT

“Member nominatedtrustees are the voice ofrank and file pensionscheme members in the

governance of theirschemes”.

Calendar of Events

OPDU will be taking part in a series ofregional seminars in partnership withthe PMI, PPI, Mitchell Consulting,Kempen & Burges Salmon. OPDU willbe speaking about the risks trusteespersonally take in their role, theeffectiveness of the protections inplace, case studies and newdevelopments in insurance.

Regional Seminar Dates:

• 2 September in Norwich (Venue TBC) – OPDU will be speaking at the PMI’s Eastern Seminar.

• 28 September at Gateley Plc, Ship Canal House, 98 King St, Manchester – in partnership with Mitchell Consulting. This Seminar will cover investment risk and a legal update.

• 13 October at OPDU’s offices – OPDU will host the PPI Associate Members’ Event, to allow an expanded networking opportunity following an interactive event with a panel of speakers from across the industry. The event will be based on the State Pension Age. Drinks and canapés afterwards.

• 16 November at the Radisson Blu Edwardian Hotel, Manchester – OPDU will be speaking at the PMI’s Northern Conference.

• 17 November at the offices of Kempen Fiduciary Management in Edinburgh. This Seminar will cover fiduciary risk management and a session on the possible future consolidation of pension schemes.

• Dates for seminars in Bristol to follow. For further information, or to pre-register for any of these events, please email: enquiries@opdu.com

OPDU and the PMI Join Forces

OPDU and the PMI have joined forces to promote membership of thePMI’s Trustee Group. The Chair of Trustees for all new OPDU Memberswill be offered membership of the PMI Trustee Group for the first yearas part of OPDU Membership. Membership renewals will also includean invitation to the PMI Trustee Group.

OPDU Ltd 90 Fenchurch Street London EC4M 4ST E: enquiries@opdu.com T: (0)20 7204 2400

OPDUIS MANAGEDBY THOMASMILLER

www.opdu.com

OPDU NEWSLETTER July 2016

All views expressed in this publication are those of their authors and do not necessarily reflect the views of OPDU Ltd, Chubb, Thomas Miller & Co Ltd or any employees or agents of those companies. The articles do not necessarily deal with every aspect of the topics covered and are not designed to be professional advice. OPDU Ltd, 90 Fenchurch St, London EC4M 4ST www.opdu.com E: enquiries@opdu.comT: (0)20 7204 240. The Occupation Pensions Defence Union Ltd, Registered in England no. 3277897. Registered office as above. Authorised & Regulated by the Financial Conduct Authority. VAT Reg No: 397 1681 10