Pension Trustee Code of Conduct

 

View the Pension Trustee Code

We encourage pension plans to adopt the the Code of Conduct for Members of a Pension Scheme Governing Body. Adopting the code:

 

• Establishes an ethical framework for governing board members
• Shows commitment to the best interests of pension participants and beneficiaries

 

What Does the Pension Trustee Code Cover?

The code outlines 10 fundamental ethical principles for pension fund trustees:

 

• Act in good faith and in the best interest of the scheme participants and beneficiaries
• Act with prudence and reasonable care
• Act with skill, competence, and diligence
• Maintain independence and objectivity by, among other actions, avoiding conflicts of interest, refraining from self-dealing, and refusing any gift that could reasonably be expected to affect their loyalty
• Abide by all applicable laws, rules, and regulations, including the terms of the scheme documents
• Deal fairly, objectively, and impartially with all participants and beneficiaries
• Take actions that are consistent with the established mission of the scheme and the policies that support that mission
• Review on a regular basis the efficiency and effectiveness of the scheme's success in meeting its goals, including assessing the performance and actions of scheme service providers, such as investment managers, consultants, and actuaries
• Maintain confidentiality of scheme, participant, and beneficiary information
• Communicate with participants, beneficiaries, and supervisory authorities in a timely, accurate, and transparent manner

 

The principles are universally applicable regardless of the type or nature of the pension scheme. Guidance in support of the principles is included.

 

Who Should Adopt the Pension Trustee Code?

 

• Public companies
• Governmental agencies
• Unions
• Pension schemes administrators

 

Plan participants and beneficiaries should ask their pension scheme managers to incorporate the Pension Trustee Code.

 

The Pension Trustee Code is voluntary. But we believe that effective self-regulation that goes beyond the minimum requirements of the law is the most effective and efficient form of market regulation.

 

How was the Pension Trustee Code Created? We worked with a multinational coalition that included the Council of Institutional Investors (United States), Organization for Economic Cooperation and Development, National Association of Pension Funds (United Kingdom), Swiss Association of Pension Funds, Hong Kong Retirement Schemes Association, and Dutch Association of Industry-wide Pension Funds. We also asked for public comments from all major global financial markets and stakeholders.