Benefits August 23, 2005

UK Prepares for Pensions Act

August 23, 2005 (PLANSPONSOR.com) - A Mercer Consulting survey of over 130 UK respondents shows that 56% of trustees are prepared for the responsibilities that will be required of them by the Pensions Act that goes into effect next April.
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The first guidance issued on the legislation extended the group of people responsible for reporting illegal pension activities (See New UK Pension Regulator Issues Plan Whistleblower Guidance ). Only 5% of respondents said they had not even considered the consequences of the new legislation.

In a Mercer press release, the company notes that trustees will need to be able to manage conflicts of interest as well other legal and fiduciary duties. Thirty four percent of respondents have considered conflicts but still feel they do not need to make changes to their trustee boards. Twenty nine percent have discussed or implemented changes to their boards.

As Gordon Clark, Principal of Mercer, said in the release, “The good news is that detailed planning and rigorous governance framework can help trustees handle the new obligations. Many trustees will need training to equip them with the required technical and behavioral competencies.”

Mercer conducted the survey at a series of seminars in the UK.

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