Irish Institute of Pensions Management (IIPM) spearheads programme to upskill lay pension trustees

Irish Institute of Pensions Management meeting with An Tanaiste Joan Burton T.D. Picture Colm Mahady / Fennells - Fennell Photography@Copyright 2016

New initiative will support increased consumer protection in €90 billion industry

The Institute of Pensions Management (IIPM), has undertaken a major initiative to facilitate upskilling of lay pension trustees, many of whom act in a voluntary capacity, who are part of the oversight process of some 62,000 pension schemes nationwide. While the pension industry is heavily regulated, there is currently no requirement for the 180,000 lay trustees in Ireland to hold a relevant pensions management qualification in an industry which has approximately €100 billion of assets under management on behalf of 400,000 scheme members.

The IIPM believes to truly serve pension scheme members trustees must understand the broad range of complex issues such as legal, actuarial, tax, investment, governance and risk management. Through appropriate upskilling these trustees will be better placed to challenge, assess and manage schemes more effectively. In order to develop the appropriate skills required to achieve this the IIPM has established the „IIPM Law and Governance Programme for Trustees’:- a programme of professional accreditation for lay trustees developed in association with National College of Ireland. Details of the new programme will be announced this week at the IIPM conference Empowering Trustees for Better Member Outcomes, with speakers from Ireland and the UK.

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Ahead of the announcement, the prospectus for the IIPM Law and Governance Programme for Trustees was presented to the Tánaiste and Minister for Social Protection, Joan Burton T.D., who welcomed the initiative to provide a certified qualification for lay pension trustees.

Speaking about the initiative, Rose Leonard, President of the Irish Institute of Pension Management said: “With assets under management of approximately €100 billion, Irish pension schemes play a central role in Ireland‟s economic and social life. We are fortunate that by far the majority of trustees, who are either employer nominated or member elected, act with integrity and independence in the best interests of pension scheme members. However, given the scale of the industry and the crucial importance pension funds play in providing income for retirees there is a consumer protection imperative to ensure that those acting in an important oversight role have the necessary skills to perform their role as trustees. There are similar parallels to be drawn with the focus in recent years on upskilling non-executive Directors who play a key oversight role in corporate governance. Upskilling of lay trustees can only serve to improve governance in the pensions industry and help maintain the highest standards for members, while creating further confidence within the sector.”

Commenting on the introduction of the IIPM’s new professional programme, Brendan Kennedy, Pension Regulator, Pensions Authority said: “Improving trustee standards of education is an important part of the Pensions Authority‟s objectives. We therefore welcome the introduction of the „IIPM Law and Governance Programme for Trustees‟ as a very positive step in this direction and we hope that many trustees take advantage of this opportunity to enhance and develop their knowledge and understanding of pensions in the interests of the members whom they serve.”

The Pensions Ombudsman, Paul Kenny added: “I am very pleased to learn about the forthcoming launch of the „IIPM Law and Governance Programme for Trustees‟. The pension environment is increasingly complex and
the burden of regulation increasingly heavy. I believe that this programme will be a valuable support, particularly for lay trustees, whether member-selected or employer-appointed, which will enable them to continue to play an active role in the governance of their schemes, by broadening their understanding of the many and varied aspects of their duties and responsibilities.”

 

About the qualification
The IIPM Law and Governance Qualification for Trustees.
The qualification offers trustees the insights and understanding required to carry out their roles effectively. Touching on the many aspects of pension schemes, the programme will focus on the building blocks for implementing good scheme governance and risk management.

The programme covers the core areas of trustees responsibilities imposed by both legislation and social needs and it examines the liabilities they face, compliance issues and the need for proper risk management. Trustees will have a deeper understanding of how risks can be mitigated through the implementation of good practices and procedures. Issues will be examined for both ongoing schemes and those in the process of wind-up.

Full details of the ‘IIPM Law and Governance Programme for Trustees’ are available on www.iipm.ie

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