Who is covered?
Individuals – Past, present, and future trustees, employees and directors and officers of a sponsoring employer and employees undertaking administration duties related to the fund, such as committee or board members, administrators, pension scheme managers, internal dispute managers.
Entities – In addition to the sponsoring employer company, any plan, scheme, or fund, any corporate trustee company established and duly appointed to act as a trustee of the plan is also included under the definition of "Insured" in the policy.
Who should consider buying this insurance?
Companies with pension funds or the pension funds themselves should purchase Pension Trustee Liability insurance cover for the benefit of their pension fund trustees and for balance sheet protection against the organisation and trust itself.
Trustees will usually request specific protection from insurance where schemes are bought out and trusts wound-up.
In recent years the duties and obligations placed on trustees of pension funds, be they directors of a sponsoring employer company or employees appointed by the members, have increased under new and growing legislation.
Trustees are required to be up-to-date with their own scheme documents, and to have knowledge and understanding of trusts and pension law, and of the principles of funding and investment.
|State of the GB Market for Pension Trustee Liability Insurance