BROADSTONE has today given its wholehearted support to RMT leader Bob Crow, who is encouraging pension scheme members to demand that deferred members should be able to stand as member-nominated trustees. Under present pension rules, schemes are only required to seek nominations from active and pensioner members. There is no legal requirement to seek nominations from deferred members.
Setting out BROADSTONE’s case, actuarial director John Broome Saunders said "It is shockingly unfair that deferred members have no legal right to take part in the trustee appointment process. With many schemes now closed to accrual, deferred members can easily make up over half the scheme membership. Because deferred members often won’t even start to receive benefits from a scheme for 20 years or more, the proper long-term risk management of a scheme is of critical importance to deferred members."
Broome Saunders believes that the exclusion of deferred members may be as a result of historic data issues. "In the past, schemes often didn’t have up-to-date contact details for deferred members, so including them in the appointment process may have practically been difficult. However, data quality has now improved significantly, and we no longer view this as a reasonable reason to exclude such members. Indeed, the absence of deferred members from the trustee appointment process is now making a mockery of the entire member-nominated trustee concept."
John Broome Saunders