Administration agreements are becoming increasingly important as more than a simple contract between parties. They are now widely used as an important tool in a Scheme’s governance arrangements. A tool that steers the relationship between the trustee and the administrator, and a tool that governs the services being delivered, and how they are delivered.
Administration agreements have come a long way from the standard formats commonly used, and are now customised to the requirements of each individual pension scheme. The new guide, developed in collaboration with Muse Advisory and CMS, provides a useful starting point to get trustees and administrators thinking about what needs to be included in their contracts.
The guide is split between the front-end of the agreement. Prepared by CMS, this section covers the key terms and clauses that should be included. The second section, written by Muse Advisory, addresses the main schedules that trustees should consider including in any agreement, and provides a guide to the sort of items that ought to be included in each schedule.
The new guide to the key principles of administration agreements can be downloaded in pdf format from the link below. There is no charge for this facility.
Guide to the Key Principles of Administration Agreements - Sept 2014
This document is not an exhaustive guide to drafting an administration agreement. You should not place reliance on this document or the information contained within. We recommend that you seek appropriate advice when negotiating and agreeing a contract. You should also refer to your powers and obligations under the Trustee Deed and Rules when entering into such an agreement.