Can you clarify that please Steven, how are the trustees leaving themselves open to litigation? On what grounds?
I'm surprised trustees have decided that a 100% equity fund is the fund of choice for a pension scheme. They are leaving themselves open to litigation when there is a stock market crash and the fund value falls dramatically.
Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
trustees must invest with the care which an ordinary prudent person would take in investing for the benefit of other people for whom they felt morally bound to provide. As the purpose of the scheme is the provision of benefits for members and other beneficiaries, trustees must invest solely in their best interests. In this context “best interests” should be taken to mean best financial interests. Trustees must also invest the assets of the scheme in a manner appropriate to the circumstances of the scheme, i.e. they must review the general circumstances, such as the age profile, of the members of the scheme and invest the assets appropriately (par. 3.7)
Maybe I'm thinking of another thing altogether but isn't the amount of risk decided by the individual at the start and can be changed at any stage ? (Usually when the company decide to call the pension advisor for a chat about once a year).Even if all the members are in their 30's, like the OP, you could say that a 100% equity strategy is on the risky side.
Maybe I'm thinking of another thing altogether but isn't the amount of risk decided by the individual at the start and can be changed at any stage ? (Usually when the company decide to call the pension advisor for a chat about once a year).
our company has now told us that they are switching us to the Zurich Dynamic Fund