DUTIES
The general duties of a trustee of an occupational pension scheme such as the MNRPF can be summarised as follows:
-
To act in accordance with the Trust Deed & Rules which governs the
scheme, within the framework of the law.
The MNRPF has a set of legal documents called the Trust Deed & Rules. This document sets out the powers which the Trustee Board can use and what discretions the Trustee Board has in the exercise of those powers.
- To act prudently, conscientiously and honestly,
with the utmost good faith.
Members of the MNPRF have placed their trust in the Trustee Board to look
after the financial assets from which their benefits will be provided.
Directors of the Trustee Board must therefore act prudently in dealing
with the investments. In effect, this means acting in the way that a prudent
person would if the assets were their own. This includes giving consideration
to the risks involved and obtaining sufficient professional advice to
ensure that the Trustee Board can make prudent decisions.
Members of the Trustee Board must act in good faith and ensure that conflicts
of interest are not allowed to dictate their actions.
- To act in the best interest of the beneficiaries
and strike a fair balance between the interests of different classes of
beneficiary
A beneficiary is anyone who is entitled to or might receive benefit from the MNRPF, either now or in the future. The Trustee Board must take account of the interests of each class of beneficiary and reach a fair decision. It is important to note that all the directors of the Trustee Board, including the pensioner-elected one, have a duty to act in the best interests of all the beneficiaries and not as the representative of the particular interests of those who appointed or elected them.
- To invest the assets of the scheme
The detail of investment related matters is handled by an Investment Committee
made up of some of the Trustee Board's directors. The Investment Committee
meets separately, reporting on their activities to each quarterly Trustee
Board meeting and seeking decisions on matters of principle from the Board
as required.
- To take advice on technical and other matters
as necessary
The Trustee Board has appointed professional advisers to give advice on
financial, legal and investment matters.
In addition to the
above, there are a number of specific duties and tasks that the Trustee
Board must carry out, much of which is set out in legislation. The MNRPF
is a well-run pension scheme and the appropriate mechanisms are in place
to ensure that the legislative requirements are met.