Are trustees of Pension schemes really independent?

[Bronco Lane]

My wife's company has changed her Pension scheme 3 times in the space of about 10 years. The original company sold off/outsourced a piece of itself and the pension was transferred to the new company scheme. This outsourced company was in turn taken over by another company and the pension scheme was transferred again. The latest twist is that they have decided to wind down the latest scheme due to very few members being left and it is on the transfer list again.
Incidentally the work being done by the company is exactly the same today as it was when my wife first joined 10 years ago. The company basically just outsourced an arm of itself.
The trustees of all the schemes just go along with everything. In fact I even think that the trustees are the same company that is managing all the various moves and company pensions. There may be a few token employees as trustees.
I almost feel that her pension is just being churned every so often.

How sure can I be that the above is not happening?

 

[Steven Barrett]

What benefit would the trustee get from churning the scheme? Do mean the financial broker?

If a company is taken over by a bigger one, it would be normal to join the new pension scheme. It's whether you get 100% of your money transferred across that is important and there are rules in place against this for schemes.

 

[BOXtheFOX]

The company Mercer often act as trustees for companies. If a company is changing between schemes, are they allowed to act for both schemes?

 

[ClearFinance]

Did she get any literature or letters on the new scheme each time?can be common when businesses merge or buy out others that the parent or main co scheme continues. Some trustees are more hands on than others...majority are company directors who do the trusteeship... they may not want to or have any knowledge as to what goes on in the market

 

[punter]

Are trustees of Pension schemes really independent?

Essentially no, they are not. They are usually appointed by the employer, they are always governed by pensions and trustee legislation, the trust deed and the rules of trusteeship generally. They have some independence within this framework, but they are not independent in any meaningful way.

How sure can I be that the above is not happening?

Not really clear what you are getting at with this question.

The company Mercer often act as trustees for companies. If a company is changing between schemes, are they allowed to act for both schemes?

Yes, I certainly can't see any reason why not.

 

[RainyDay]

There is an option for scheme members to elect trustees. I'm sure if you Google for it, you'll find the requirements, something like a percentage of members that must demand an election.