Pension News

University of Aberdeen Superannuation & Life Assurance Scheme (UASLAS)
We would like your help in running the Scheme

The Pensions Act 2004 states that one third of the trustees of a pension scheme must be Member Nominated Trustees (MNT).  The University has decided that our pension scheme requires six Trustees in total, so two Trustees have to be nominated by you, the current pensioner and active members of the pension scheme, and four Trustees will be appointed by the University.

We are writing to all pensioner and active members of the scheme to notify them that they are eligible to stand as member nominated trustees. 

University of Aberdeen Superannuation & Life Assurance Scheme

The University operates the pension scheme for all staff in grades 1 to 4. It also covers existing members in higher grades who elected not to join USS in 2006. This scheme is looked after by Trustees.

The Scheme has over 2,000 members, including current and retired employees and those who have left the University but have deferred drawing their benefits until retirement age.  The Scheme funds are invested separately from the University by Legal & General Investment Management and currently total over £90 million.

The Nomination Process

How will the Member Nominated Trustees be appointed? 

We are going to hold elections.  To stand for election you must be nominated by two members of the pension scheme, either current employees or pensioner members.  If you wish to be nominated for election, complete the attached nomination form, including the signatures of two pension scheme members who support your application.  Your completed nomination form should be returned to Suzanne Laing, Pensions Administrator, at the above address.

Any queries about Member Nominated Trustees or the process outlined in this announcement should be referred to Suzanne.

The Selection Process

Currently, our pension scheme has six Trustees as follows:

• Irene Bews, Director of Finance
• Steve Cannon, Secretary to the University
• Prof Angela Black, Chair in Accountancy & Finance
• Brian Paterson, Scheme member
• Dr Alistair Mair, Convenor
• Diane Massie, Scheme member

Two of these Trustees, Brian Paterson and Diane Massie, were elected 3 years ago from the employee/pensioner membership of the Scheme in accordance with these arrangements.  As this arrangement expires after 3 years they will stand down prior to the election. Diane Massie will be eligible for re-election but Brain Paterson will no longer be eligible so will withdraw from the process.

It is important to note that the Trustees represent the interests of all of the beneficiaries of the Scheme, regardless of whether they are still working for the University or have been retired for many years.  This also applies for the Trustees who are nominated by the University.  The Member Nominated Trustees will therefore be elected from a single constituency containing all active and pensioner members.  In line with industry practice, those who no longer work for the University and have yet to draw their pension are not included in this process.

The selection process will then be held as follows:

• If two or fewer nominations are received from qualifying members then these nominees will be formally asked to become Trustees.
• If there are three or more nominations received then the Trustees will run an election.  The two nominees receiving the highest number of votes will be asked to become Trustees.
• Ballot papers will be distributed by post to all those eligible to vote.  Candidates will be given the opportunity to include an election address of up to 200 words in the mailing.
• If vacancies remain after the nomination process is completed, the process will be repeated on an annual basis until the vacancy is filled.

The closing date for nominations is 30 April 2013 and elections will be held if necessary between 1 June 2013 and 10 June 2013.  All active and pensioner members of the scheme will be informed of the outcome of the nomination and selection process by 30 June 2013.

The nomination and selection process will be reviewed by the Trustees on a regular basis, usually every five years, or sooner if there are significant changes to the scheme.

Acting as a Trustee – what’s involved?

The following summary is taken from the guidance given to Trustees by The Pensions Regulator:

In becoming a Trustee of an occupational pension scheme you are choosing to take on an extremely important role.  The board of Trustees, acting separately from the University, hold assets for the beneficiaries of the pension scheme.  As a Trustee, you are responsible for the proper running of the scheme which is carried out in your name – from the collection of contributions to the investment of the assets and the payment of benefits.  The scheme members look to you to make sure that their benefits are secure and that the scheme is well run and properly funded by the University.  The Trustees represent all scheme members and their beneficiaries and do not represent any particular grade, location, or category of members.

As a Trustee of the University ofAberdeenSuperannuation & Life Assurance Scheme your role will be wide ranging and include;

• Understand and apply the requirements contained in the trust deed and rules;
• Attend Trustee meetings on a regular basis at King’s College;
• Review regularly the investment strategy of the scheme in consultation with our advisers, Xafinity, and investment managers, Legal & General Investment Management;
• Be responsible for investing the pension scheme funds;
• Understand your duties arising from trust law, the requirements of the regulatory bodies and the legal language used under the trust to which you have been elected;
• Be willing and able to explain the pension scheme options and annual report to new and existing members;
• Be able to receive confidential information about individual members or the University and not pass it on to others;
• Be fair and impartial in your decision making and act prudently, responsibly honestly, and in the best interests of scheme members at all times.

More information on the duties and responsibilities of a Trustee is available from The Pensions Regulator’s web site at www.thepensionsregulator.gov.uk/trustees.  Refer in particular to the link “Understanding your role”.

Anyone interested in becoming a Trustee should contact Suzanne Laing for more details on what the role involves.

Training

As a Trustee, you will be responsible for handling the University’s pension scheme on behalf of all its members.  It is a role of significant responsibility which we take seriously.  To ensure you can perform your responsibilities the Trustees have engaged the advisory services of pension experts Xafinity and pensions law experts Pinsent Masons and also provides Trustees with training and a support network:

• Meetings four times a year with the Board of Trustees and pension advisor;
• Support, advice and guidance from the actuary;
• Support and coaching from current, experienced Trustees;
• On-line training from The Pensions Regulator.  If you wish to stand, you may wish to complete the first unit of this training, as it gives a flavour of what it is like to be a trustee.  It can be accessed at the “Quick Links” section of The Pension Regulator’s website at www.thepensionsregulator.gov.uk/trusteesand, once you have registered, the module should take less than an hour to complete;
• Ongoing training on relevant issues arranged as and when appropriate.

Fees

The role of the Trustee is not paid.  If you are an employee, you will however be given additional time off to attend meetings and take part in training.  You will also be reimbursed for any travel and other expenses incurred in fulfilling your duties.

Period of office

Elected Trustees will be appointed for a three year period or for the remainder of the original term if the nomination process is being rerun to replace an existing member nominated trustee who has been removed or resigned from office.  A member nominated trustee will cease to hold office if they

• Decide to resign as a Trustee
• Leave the University’s pensionable employment (including joining the Universities Superannuation Scheme), unless they start drawing their pension immediately
• Transfer their benefits out of the scheme
• Are removed by unanimous agreement of the other Trustees.

A fresh nomination process will be carried out within six months if a Member Nominated Trustee ceases to hold office in this way.

After the three year term is up, Member Nominated Trustees can stand for a second or further term, but the nomination process will be rerun to establish whether any other candidates wish to stand.

Member Nominated Trustee nomination form

Alistair Mair
Convener of the Trustee Board
University ofAberdeen Superannuation & Life Assurance Scheme

25/03/2013