IPE.com reports that, specifically the study said, “The evidence suggests that the average trustee does not have the education and professional qualifications to play the role of informed consumers of financial advice and decision-making (as suggested in the 2004 Pensions Act).” The study authors go on to say that “training and experience will not make up the difference if trustees come to investment responsibilities without sufficient qualifications.”
The study suggests there needs to be guidelines about roles and responsibilities that recognize the differences in trustees’ competence and consistency, according to IPE.com. The authors advise that plan sponsors should consider education and professional qualifications of trustees more closely.
Pension schemes should consider supplementing their boards with independent experts, the study suggests.
The working paper, “Consistency of decision-making: the effect of education, professional qualifications, and task specific training on the probability judgements of pension fund trustee decision-making” can be downloaded from here .