Trustee Good Practice Guide

Other considerations

If your employer pays your indemnity insurance, you should be aware that it is unlikely that the policy will be renewed once it expires. This is because the employer has become insolvent and the Insolvency Practitioner is unlikely to pay the policy premium. Most scheme rules will prevent this cost being met through scheme assets. If this is the case, you may wish to contact your caseworker who will help you appoint an independent trustee, who has the appropriate indemnity insurance, to work with you during this period.

You may also face a conflict of interest if you are both a trustee and a company director, eg in relation to maximising section 75 debt. As trustees you would want to maximise this but, as a company director you will wish to keep this at a minimum. Or, indeed, if you were involved in past decisions which may later be found to be incorrect. The Pensions Regulator has issued regulatory guidance on how to manage and mitigate conflicts of interest.

www.thepensionsregulator.gov.uk/guidance/
conflictsofinterest

You should refer any concerns about conflicts of interest to your caseworker as appropriate.