PMI Welcomes Stronger Governance and Higher Administration Standards Across Pensions 

• Reforms lay foundations for higher standards and long-term confidence 

• Focus must turn to delivery as pensions governance framework evolves 

The PMI has welcomed the continued focus on governance and administration in the face of a busy pensions reform roadmap outlined in plans announced today by the DWP. 

The PMI supports the Government’s intention to strengthen the master trust authorisation and supervision regime, bringing its approach to commercial conflicts and fitness and propriety into closer alignment with the frameworks for unconnected multi-employer CDC schemes and DB superfunds. 

Master trusts now hold the retirement savings of millions of people and are increasingly large, complex and commercially significant. The PMI therefore believes the Government is right to focus additional regulatory scrutiny in this area, including extending oversight beyond the trustee board to those able to exercise material influence over a scheme, its strategy and its financial sustainability.  

Stronger requirements for identifying and managing conflicts should also help ensure that decisions remain focused on members’ interests rather than commercial pressures. 

Given this strengthening of the Master Trust regime, the PMI also welcomes the Government’s proportionate approach to trustee standards and the use of professional sole corporate trustees (PSCTs). Rather than imposing unnecessarily prescriptive requirements across the wider trustee landscape, the focus should remain on ensuring consistently high standards, effective governance and appropriate safeguards where risks arise. 

The PMI will continue to support high standards through qualifications, accreditation and training for both lay and professional trustees. PSCTs can also play a valuable role where schemes require additional expertise or governance support, provided appropriate arrangements are in place to manage conflicts and maintain effective oversight. 

Overall, this strikes the right balance, the PMI said, between strengthening regulation where the scale and commercial nature of the market warrant it, while retaining a proportionate and flexible approach elsewhere. 

Stronger administration 

Responding to the Government's consultation response today, Helen Forrest Hall, Chief Strategy Officer at the PMI, said:  "We particularly welcome the focus in the DWP response on implementing new minimum standards across pension scheme administration.  

"We have consistently called for wider adoption of clear, consistent administration standards that the regulators can monitor and enforce, recognising the vital role administration plays in delivering good member outcomes, maintaining confidence in the pensions system and supporting the long-term success of pensions policy initiatives.  

"High-quality administration sits at the heart of good governance and is fundamental to delivering positive outcomes for pension savers.  

"As schemes become larger and more complex, and as the industry continues to adapt to significant regulatory and technological change, it is increasingly important that administration standards evolve and are adopted by all schemes and providers.  This helps create a level playing field, supports operational resilience and provides greater confidence for savers and trustees alike.  

"Any new framework should be proportionate, avoid unnecessary duplication and support continued investment in people, technology and data quality. We are in favour of a model in which firms can evidence that they meet regulator expectations through frameworks such as PASA accreditation, with PMI qualifications providing part of the knowledge and skills development, and assessment."  

The PMI believes stronger governance and administration standards must be supported by continued investment in skills and professional development across the pensions sector. Building capability will be essential if schemes, administrators and trustees are to meet higher expectations and deliver good outcomes for savers.   

Through its full suite of qualifications, continuing professional development programme and accreditation pathways for both lay and professional trustees, the PMI supports the development of the knowledge and expertise needed across the pensions ecosystem. 

ENDS 

Notes to editors   

• The DWP plans are part of its formal response​​ to its consultation: Trust-based pension schemes: Trustees and governance, building a stronger future.

• The Pensions Management Institute (PMI) is the UK’s leading professional body for those working in pensions and retirement savings. With over 10,000 members, PMI represents the broadest range of pensions professionals and trustees in the country.   

• Its members manage and advise some of the world’s largest pension schemes and make key decisions on substantial financial matters. With more than £1 trillion invested in UK pensions, PMI members play a vital role in shaping the nation’s financial future. With five decades of experience, PMI remains at the forefront of pensions education and thought leadership.     

Press contact:  

For media enquiries, please contact Matt Adams, Head of Media and PR at pressoffice@pensions-pmi.org.uk.