The Trustees of The Lewis Workplace Pension have a fiduciary duty to their scheme members, which means they are under a strict, legal obligation to act solely in the interest of their scheme members.
Attaining authorisation under The Pension Regulator Master Trust Authorisation regime requires master trust schemes to evidence that they have adopted and can maintain strict governance controls; including protecting members from high charges, hidden costs, poor investment decisions and taking responsibility for ensuring that employees have access to good quality information and advice.
The Lewis Workplace Pension has been granted master trust authorisation by the Pension Regulator and this may provide Employers, whose duty it is to choose an auto-enrolment scheme, with some comfort that the scheme does in fact meet the required standards and the needs of their workforce.
However, pensions are central to an employee’s long-term financial future. It is therefore possible that at some point in the future it could be argued that an employer owes some kind of obligation to its employees to regularly review the suitability of their chosen scheme. After all, the individual would not be a member of the scheme if not for the fact that he or she were not also an employee.
So, once your auto-enrolment obligations have been completed, you have selected a scheme and met the minimum compliance do your obligations stop there?
Although, currently there is no legal requirement for employers to monitor and review their chosen scheme, in an ever increasing litigious world there is always the risk that in the future employers may be held accountable for any failure to protect the long-term financial interests of their employees.
We believe working together we may be able to prevent any future consequences for employers being held accountable for their choice of pension plan. TLWPT Trustees actively encourage participating employers to:
- Look at our services to members, the suitability and performance of the default fund and other investment options on offer.
- To review the scheme on an ongoing basis to ensure it continues to meet the needs of their workforce.
- To monitor the quality of our communications with members and whether, as the employer, they receive timely reminders of changes to regulations and the ongoing need for compliance.
- Look at the standard of pension advice provided to members’.
- Pass on any member feedback to us, whether good or bad.