Bobby Riddaway is managing director of HS Trustees
HS Trustees recently conducted a survey of consulting firms to understand the flow of new tenders for professional trustees in 2024 and into 2025.
The results back up the message that the trend is one way and that schemes that do not currently have a professional trustee will be likely to be looking for one. This is especially in the light of the requirements of the new General Code and Funding Code.
What is more surprising, but maybe linked, is the slow down in the latter half of 2024. Of the 10 firms that responded, they all reported a slow down with some even reporting zero tenders in Q3 and Q4. While not all appointments are performed by tendering, the consistent message was that appointment slowed down in 2024 ahead of an expected increase again in 2025.
It could be that the slow down was due to schemes getting to grips with their new governance requirement, before appointing a new trustee to run with them. Or it could be that well-funded schemes could be deciding on run-on, or an endgame, and then going out for expert help in achieving their goal.
The other common message was that schemes without a professional trustee are expected to seriously consider appointing one and that sole trustee appointments already make up at least half of new appointments.
Finally, there continue to be significant replacement of existing trustees due to terms ending, or retirements and this reinforces the results of the last two professional pension surveys.
The firms that responded to the survey were: First Actuarial, LCP, Hymans Robertson, XPS Pensions Group, Spence & Partners, Redington, Broadstone, WTW, Barnett Waddingham and Capita.
Bobby Riddaway is managing director of HS Trustees
