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The Actuary The magazine of the Institute & Faculty of Actuaries

Pension Corporation reaches Telent agreement

Pension Corporation has reached an agreement with The Pensions Regulator over its ability to appoint trustees onto the retirement scheme of Telent. The regulator had raised concerns about the potential for conflicts of interest after a trustee of the Telent scheme highlighted the sponsor’s ability to “raid the escrow” under certain circumstances.

The agreement imposes a governance structure on the Telent scheme. The structure requires that:
>> Pension Corporation does not appoint any person from Pension Corporation or related companies as trustee to a scheme in which it has interests without seeking the approval of the regulator
>> The board of trustees comprises three employer-nominated trustees, three member-nominated trustees and three independent trustees
>> Independent trustees must be verifiably independent. The first three will be appointed by the Determinations Panel and thereafter from the regulator’s list
>> The chairman of the board will be one of the independent trustees
>> The implementation of a “conflicts-of-interest protocol” for the effective identification and management of such.

In a statement, Pension Corporation said it had, “fought to ensure a balanced model of governance for the future of the pension scheme,” and that it, “welcomes the restitution of a three-three-three-split trustee board and the appointment of two new independent trustees”.