Case Study: Corporate Sole Trustee appointed to non-UK sponsor to simplify relationship (Pensions)

Driver(s) for change:

• The Japanese sponsor was not familiar with UK-based pension schemes and wanted to simplify and improve the scheme’s governance
• Sponsor wanted to appoint a professional corporate sole trustee that could more easily identify with its way of doing business
• Freeing up resources, ensuring time and cost efficiencies
• The sponsor was looking for a trustee with experience of governance best practices and a breadth of investment experience

Key challenges presented clearly and transparently by LawDeb:

• Outgoing-trustees’ concerns with future indemnification
• Maintaining the knowledge and understanding of the Scheme
• Maximising the value for money and significantly reducing any potential negative affects to members as a result of the transition

LawDeb’s Solution:

• Undertook an investment review of the default investment strategy for the DC and AVC membership. This led to:
  • replacing the default investment option with one targeting a more flexible retirement outcome.
  • negotiating reduction in the Annual Management Charges payable by members Company agreement to pay for some transition costs
• To ensure no loss of Scheme knowledge the Trustee:
  • ensured that it has a working knowledge of the Plan's trust deed and rules; the Statement of Investment Principles (SIP); and any other policy documentation
  • Undertook regular trustee training on current issues as well as bespoke training specifically for the Plan
  • Took advice from the Plan’s investment advisers, actuary and lawyers as required

“Working with the Sponsor LawDeb as CST has been able to meet the key requirements of this appointment by maximizing value and minimizing impact on members within a relatively short time period. This is in large part due to the efficiencies of the CST model and the way we are able to interact with plan stakeholders to work through projects.”

Anna Eagles, Trustee Director, LawDeb