Pension Trustees Liability

Trustees are faced with a greater number of statutory duties brought into force by the Pensions Act 1995. A duty of care was subsequently imposed on trustees under the Trustee Act 2000. More recently the Pensions Act 2004 introduces a number of changes to the duties and obligations of trustees including a new statutory requirement for ‘knowledge and understanding’.

Trustees who breach their duties or responsibilities may place their personal assets at risk should they be found to be personally liable for any loss experienced as a result of their actions. Trustees may also incur criminal penalties through acting improperly or fraudulently, or civil penalties by contravening statutory requirements.

Insurance covers are available to provide protection including

• Breach of trust, duty or statutory provision
• Maladministration, negligence or administrative errors
• Wrongful omissions, or misstatements
• Loss arising from damage loss or destruction of pension scheme documents for which the trustees are responsible

A policy can provide financial protection for:

• Public relations expenses
• Civil fines and penalties, where insurable
• Court application costs
• Emergency costs
• Third party pursuit extension

To make sure that your business gets the right protection at the right price call the Noyce Team to protect your Trustees.