Any
employers who are currently acting as trustee on their group pension scheme and are querying the value of appointing an independent trustee may be interested
in reading the article by Tim Healy in the Independent - Ex- De Beers pension fund members are owed €50m, court hears.
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This case outlines very clearly
the inherent conflict of the employer trustee, particularly in a wind up
situation. One of the main duties of a trustee is to act in the members
best interest. It can be very difficult for a member trustee, who is
employed by the company, or a company trustee who has an allegiance to the
employer to separate out these roles and only act with only the members
interest in mind. As can be seen in this case to do otherwise can
leave the trustees open to legal action by the members. The members claim in
this case is thought to be valued at €40-50 million. By appointing an
independent trustee you can avoid this potential conflict.
Niamh Quirke
Technical Associate
Independent Trustee Limited
