Oral question asked in the House of Commons, by John Butterfill (Conservative). It was answered on Monday, 8 October 2007 on behalf of the Department for Work and Pensions.

Pensions

Question: Does the hon. and learned Gentleman agree that there is a real problem in recruiting trustees for the administration of private pensions? That is partly due to the requirements put on pension funds by the regulator. For example, there is now a requirement for trustees to become professionally qualified. That has been difficult. In the case of our own scheme, which I have the honour to chair, all our trustees took the Pensions Management Institute examinations. However, it is proving increasingly difficult for other schemes to recruit people to become trustees given both the potential liabilities that they face and the requirement for additional learning. Before, it was considered sufficient for them to take appropriate professional advice.

Answer: As it happens, I met the regulator this morning and discussed this very point with the chairman and the chief executive. There is concern about the level of qualifications that it appears that some trustees are obliged to achieve. As part of the deregulatory review, I want to look at the issue. I am not sure that the statute is the problem—it is more the guidance that seems to be given. As a result of the review, I hope that we will be able to make it much clearer that the level of competence required of trustees consists of a reasonable knowledge, plus common sense, and that we will not deter large numbers of people from becoming trustees at a time when we need them. The hon. Gentleman's point is well made.

Secondary information