Any other business: Most schemes lack a set strategy for the new year, governance experts say, as the industry turns its attention to the challenges of the next 12 months.
But how necessary is it to set a plan for 2015? And how can trustees balance rigour with the flexibility to readjust as they move through the year?
Even if things stay as they are, that’s an active decision
Roger Mattingly, Pan Trustees
John Reeve, senior consultant at Premier, said many schemes lack a formal game plan, but added: “Eighty per cent of the time it’s fine, we’re all generally pulling in the same direction.”
However, he added strategy can also be considered when, for example, schemes tender for new provider contracts as trustees will have to bear in mind how the strategy informs the services required.
Reeve also said schemes should pay their wider objectives more attention, moving beyond the focus put on investment strategy.
“[Having] a good investment strategy, that’s something people focus on, but wider strategy gets less attention. You wouldn’t run a company like that,” he said.
Roger Mattingly, director at professional trustee company Pan Trustees, said he would expect all schemes to have a business plan for the year including any big projects.
He said: "I’m a great believer in active decisions; even if things stay as they are, that’s an active decision.”
Mattingly pointed to the importance of advice and trustees surrounding themselves with people with the right knowhow. "The consultancy community is not homogenous," he said. "There are people who are wonderful… and there are people who have not kept up to speed.”
Richard Butcher, director at independent trustee company PTL, said very few schemes set overall strategies, but added one-off annual reviews should be avoided in favour of continual updates throughout the year.
“What a load of schemes do have is a calendar of events; they tend not to be reviewed," he said. "A proper one of those is a rolling diary… They might do a new year's resolution but so few of them see it through.”
Butcher attributed this to lay trustees lacking confidence and feeling outside their "comfort zone". He added: "It’s like trying to set a maintenance schedule for your car when you’re not a mechanic.”
Peter Askins, director at Independent Trustee Services, said there is no single formula for approaching strategy issues.
He said: “There is no fixed time frame for reviewing strategy with trustees and sponsors. It is something that as a professional trustee is always on the agenda, whether it is adapting to changes in the financial markets or changes in pensions policy, maintaining an overview of scheme strategy is ongoing.”
