How a good Scheme Secretary makes good business sense

What is a Scheme Secretary?

It’s common to misunderstand the role of a Scheme Secretary, possibly because the word secretary is misleading but also because, years ago, the role was purely an administrative function. The role is very different to what it once was, with Scheme Secretaries now required to have an in-depth knowledge of pensions and able to provide vital governance and technical support to the Trustee Board.

What are their responsibilities?

Scheme Secretaries ensure the Trustee Board not only meets, but exceeds the expectation for strong scheme governance set by The Pensions Regulator and the membership. At the same time, the Scheme Secretary ensures the scheme fulfils its legal, compliance and governance duties. They work closely with the trustees, particularly the Chair of Trustees, as well as advisers to ensure the Scheme is well-managed and scheme business is efficient.  Scheme Secretaries today can provide both strategic and operational support.

Why are they important?

Due to the introduction of the Single Code of Practice and other regulatory requirements, there is an increased focus on compliance, governance and administration of pension schemes. The role of a Scheme Secretary is therefore a critical part of the wider sponsor, Trustee and adviser team. Appointing a Scheme Secretary with strong experience and knowledge of the sector, and schemes at a similar stage to yours in its journey, adds true value.

Appointing an experienced Scheme Secretary eases the burden on Trustees so they can focus on strategy and decision-making rather than day-to-day governance, especially as many Trustees perform their role in retirement or alongside a full-time job. A Scheme Secretary provides Trustees with the peace of mind that all the necessary regulation is being met and helps to ensure budgets are maintained at a good level.

What skills should they have?

A good Scheme Secretary will have strong project management skills, be a good communicator (as they’ll have to deal with a number of stakeholders including advisers, trustees, members, employers and sponsors) and be exceptionally well organised and solutions-focussed. As well as managing the day-to-day, a good Scheme Secretary should also be proactive and forward thinking to help solve future challenges, have strong technical knowledge about pensions and understand the pensions lifecycle.

How we can help

At Independent Governance Group, we provide Scheme Secretarial services on a standalone basis or as part of a comprehensive package that includes Professional Trusteeship or outsourced Pensions Manager services. We can also offer support to existing in-house Scheme Secretaries, providing resource as an extension to what is already in place.

There are many benefits to outsourcing the Scheme Secretarial role – including independence from the Trustee Board, which can help with balancing of priorities and avoiding conflicts of interest, and also means boards benefit from the experience of more than one individual and it makes succession planning easier.

Where there is an existing in-house team carrying out the role, outsourcing frees up time and resource on HR and Finance so they can focus on other, more strategic matters. We can also cover leave and temporary or unexpected absence, or step in to fill a gap whilst employers look to recruit for a vacancy.

Our team of specialist scheme secretaries has the experience and knowledge to fully understand pensions issues. To learn more about what we can provide and how we can help, click here.