The board of trustees is a data controller of pension schemes. They have liability that is not statute-barred and they have a responsibility to understand how a scheme’s assets are invested – amongst all their other responsibilities. Since pension freedoms were introduced in 2015 the complex world of pensions got even more complex with significant burdens being placed on trustees.
Many trustees take the view that indemnification that they may enjoy from the pension scheme or the sponsor would be adequate – along with other insurance policies such as Directors’ & Officers’ liability. There are, however, many situations where those indemnities or insurance policies may not work for trustees.
WTW has developed PENSIONstar which has clear operational clauses and very broad coverage for trustees, sponsors and other parties involved in the pension process. As with our previous STAR products we have developed the product initially with key insurers who specialise in this very important area of insurance.