Arming the MNT Hilary Salt February 2016

Then (1990s) and Now (2010s) Open DB schemes Surpluses – and deficits HR departments ran schemes – benefits important Little transparency or communication Under regulation? No PPF Closed DB schemes Open DC Scheme Finance departments run schemes – costs important Lots of communication (helpful?) Over regulation? PPF

It’s a different world – we don’t need MNTs We need MNTs more than ever! And Employer Nominated Trustees too!

What do MNTs bring? Only people with a real long term interest in the benefits for members: ◦ Benefits - not just security ◦ Wider interests of the members Democratic legitimacy – a mandate to……. Common sense – often sceptical of an adviser’s “what to sell this week” list Not part of the industry – so unconstrained by custom Time and resources – ahead of a meeting

Current Developments Investment and discount rates: ◦ De-risking and over-prudence – making it impossible to have a pension ◦ Self sufficiency and buy out as the only possible option Public Service: ◦ Pension Boards ◦ Scheme Advisory Boards Independent Governance Committees (IGCs) ◦ New FCA requirement for insurers ◦ No member involvement

The MNT’s Armoury Trade Union Membership Lack of independence Legal protection More collective approach