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 today. Scheme Secretaries are now required to have an in-depth knowledge of pensions and to be able to provide vital governance and technical support to the Trustee Board. They act as a key conduit between the Trustees, sponsoring employer and advisers, helping to ensure actions are monitored, progressed and reported effectively.

What are their responsibilities?

Scheme Secretaries support the Trustee Board in meeting The Pensions Regulator’s expectations for effective governance whilst helping it fulfil its legal, compliance and governance responsibilities.

They work closely with the Trustees, particularly the Chair of Trustees, as well as the Pensions Manager and advisers to ensure the scheme is well managed and its business is conducted efficiently.

An effective Scheme Secretary enables Trustees to spend more time on decision-making and delivery by ensuring that planning, governance processes and actions are effectively coordinated and monitored. Modern Scheme Secretaries can provide both strategic and operational support.

Why are they important?

With the Pensions Regulator’s General Code of Practice now well embedded in pension scheme operations, alongside other wider regulatory requirements, there is an increasing focus on effective governance, risk management and oversight.

The Scheme Secretary is therefore a critical part of the wider Trustee, sponsor, and adviser team. Appointing someone with the right pensions experience and knowledge of schemes at a similar stage in their journey can add significant value to running the scheme.

An experienced Scheme Secretary eases the burden on Trustees so they can focus on strategy and decision-making rather than day-to-day governance, which is particularly valuable as many Trustees perform their role in retirement or alongside a full-time job.

Effective secretarial support also provides assurance that regulatory and governance requirements are being monitored, actions are being progressed and budgets and work plans remain under appropriate oversight.

What skills should they have?

An effective Scheme Secretary will have strong project management and communication skills as they’ll regularly have to deal with a number of stakeholders including advisers, Trustees, members, employers and sponsors.

They should be exceptionally well organised, solutions-focused and able to manage competing priorities. Alongside managing day-to-day scheme business, they should be proactive and forward-thinking, anticipating and relaying upcoming requirements and challenges to the Trustees, rather than simply responding to them.

Strong pensions knowledge and an understanding of the wider scheme lifecycle are also important, enabling them to understand how governance requirements and priorities change as a scheme progresses through its journey.

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. Independent support can help Boards manage competing priorities and potential conflicts, while providing access to the wider experience and knowledge of a specialist team rather than relying on a single individual. This can also strengthen resilience and succession planning.

Where there is an existing in-house team carrying out the role, outsourcing frees up time and resource on HR and Finance, as well as reducing the ongoing training burden of an ever-evolving pensions and regulatory landscape, 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 provides practical pensions, governance and project management experience, allowing us to understand pensions issues facing Trustee Boards and provide support tailored to the Scheme’s circumstances.

To learn more about what we can provide and how we can help, click here.

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