Modern trusteeship and the balance between professionalism and diversity

Trusteeship demands higher standards, new skills and diverse representation.  

The UK pension system is undergoing a period of tremendous change. Greater consolidation into “fewer, bigger, better schemes”, reform momentum through the Pensions Schemes Bill, and an operating environment which is more complex and data-driven than ever are reshaping what it means to be a pension scheme trustee.   

The scope of the trustee remit continues to expand, encompassing responsibilities once considered specialist, including cyber resilience, digital member engagement, investment innovation, data governance and the responsible use of AI.  

Against this backdrop, it is no surprise that government and regulators have signalled clear ambitions for stronger governance and greater capability.  

The Department of Work and Pensions’ recent consultation “Trust-based pension schemes: Trustees and governance, building a stronger future” sets out the need to ensure trustees have the standards and skills required for a modern, more consolidated system.  

It also recognises that governance structures need to evolve, emphasising the importance of trustee boards that are not only highly skilled but also representative of their members, with diverse perspectives that contribute to effective and well-rounded decision making.  

The consultation invites feedback on whether trustee appointment processes unintentionally create barriers to entry and how those barriers can be dismantled to welcome a broader mix of backgrounds, professions and life experiences. This matters because trustee decisions shape long-term member outcomes and the stakes are high.   

Many in the industry recognise that there is opportunity to refresh existing professional trustee qualification routes to reflect the responsibility trustees carry and the complexities of the role. Elevating standards is sensible, but the pathway must be meaningful and relevant to the full spectrum of a trustee’s role in a rapidly changing environment.  

This is not just about technical capability, and it shouldn’t be reduced to a box-ticking exercise. Capability today extends well beyond pensions mechanics; trustees need to be able to navigate member engagement and behaviours, cyber security oversight, data ethics, innovative ways of connecting with members and much more. But it must also go beyond a narrow push for “more professionalisation” which risks overlooking the equally vital contribution of a boards made up of people with different perspectives, backgrounds, experiences and ways of thinking.

Why diversity matters

There is a clear need to combine the rigour of strong professional practice with the lived understanding and empathy that keep decisions grounded in members’ realities. It’s about widening the pipeline so that the next generation of trustees can bring new skills, fresh perspectives and more representative voices.  

Progress is undoubtedly happening, albeit unevenly and slowly. When the industry discusses diversity, the focus often falls on visible characteristics yet some of the most valuable elements are less visible.   

Diversity broadens the discussion, challenges assumptions and supports better decision making. It helps ensure decisions align with what members need, understand and value.

The importance of lay trustees

In the drive toward greater professionalism, it’s easy to underestimate the value that lay trustees bring, particularly member-nominated trustees who provide an essential grounding in members’ lived experiences.  

The right answer is not a binary choice between professional and lay trustees, but a balanced board focused on collective competency; combining trustees who ensure technical rigour, alongside trustees who contribute with broader skills, experience and perspective.  

Furthermore, where schemes are supported by a strong pensions executive team, have access to robust advisory input and effective board education, not every trustee needs to be a pensions expert.

Opening doors

If trusteeship is to meet future demands, the industry must tackle the barriers head-on. This is why the expanded Pensions Management Institute Trustee Accelerator Programme (TAP) has been developed. The two-year programme is designed to help build a new and more diverse generation of pension trustees from non-pensions backgrounds. 

TAP combines structured learning, insight from experienced trustees and meaningful board exposure. With a focus on access, development and readiness, the programme creates a clear pathway into trusteeship for those who might not otherwise consider the role.  

TAP reflects what the industry increasingly needs: a way to support diversity, bring fresh perspectives and building boards that are ready for the challenges of the 2030s and beyond.

The opportunity

Trusteeship stands at a pivotal moment. If the response to change is limited to more rules and homogeneity, we risk missing the point.  

The real opportunity is to raise standards while broadening participation, building trustee boards whose collective competency is greater than the sum of individual credentials.