I read with interest that trustees should not get involved in Enhanced Transfer Value exercises (ETVs). I would agree that it should not be the position of the trustee to question the reason for such an exercise (is there a reason other than de-risking?) however, I am in full support of trustees reviewing communications to members to ensure that the guidance from the Pensions Regulator has been followed and that the offer is fully explained to members with the necessary notes of caution included.

Without trustee review the ETV runs the risk of being overturned at a later date with consequent additional cost to review and ‘fix’ any problems.

Of course if a trustee does not have an opportunity to review the ETV offer a trustee could elect to send its own communication to members but quite frankly this could do nothing other than confuse an already complicated matter.

See UPDATE on ETVs reflecting the July 2010 Guidance.

Posted in: Blog
Tags: Liability Reshaping, Trusteeship