The Trustees and their Advisers

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The Trustees and their Advisers

The Trustee Board is made up of eight directors. Four are appointed by the Company and the remaining four by the Scheme’s members.

They are referred to as Member Nominated Trustee Directors or MNTDs. Each MNTD serves for a fixed term (these terms vary e.g., either three, four or five-year periods).

We often refer to the work undertaken by the Trustee as a whole, but it’s equally important to highlight the excellent work undertaken by the four main Committees that provide essential support to the Trustee Board. Each Committee is made up of a smaller group of Trustee Directors who focus on specific issues. By working this way, we can use the individual expertise of each Trustee Director more efficiently.

Committee responsibilities
All four Committees are supported by the Secretary to the Trustee

Investment Committee (ISC)

Operational matters relating to the implementation and oversight of the Scheme’s investment strategy are considered by the ISC. This involves the selection, recommendation and continued monitoring of investment managers. The ISC also implement and monitor Environmental, Social and Governance (ESG) considerations for the Scheme. The final decisions are reported back to the main Trustee Board at the next full meeting.

Click or tap on the plus sign to see some of the tasks the ISC are responsible for:

  • Reviewing, updating and maintaining the Scheme’s Statement of Investment Principles, having taken advice from the Scheme’s investment consultant and consulted with the Company in line with any statutory and/or regulatory requirements.
  • Considering the Environmental, Social and Governance (ESG) implications of the Trustee’s investment strategy, including climate change.
  • Selecting, appointing and removing Fund Managers, in respect of the categories to implement the investment strategy agreed by the Trustee.
  • Monitoring the performance and effectiveness of the Trustee’s investment consultant periodically, and making recommendations to the Trustee if it considers any changes to be necessary.
  • Periodically monitoring, reviewing and recommending to the Trustee changes to strategic asset allocation, in respect of the categories, to implement the agreed investment strategy.
  • Consulting with the Company and keeping it informed in relation to investment matters in line with any statutory and/or regulatory requirements, and otherwise as the Committee decides is appropriate.
  • Receiving and considering updates and reports about the strength of the Company’s covenant, including receiving advice from the Scheme’s covenant adviser and updates from the Company, as well as reporting to and making any recommendations to the Trustee as the Committee considers appropriate.

Audit and Risk Committee (ARC)

This Committee is responsible for dealing with the preparation and audit of the Scheme’s statutory accounts, monitoring the Scheme’s internal controls and record keeping. The ARC also maintains the Scheme’s Risk Register.

Click or tap on the plus sign to see some of the tasks the ARC are responsible for

  • Take operational decisions on behalf of the Trustee in relation to the preparation and audit of the accounts of the Scheme.
  • Monitor the Scheme’s internal controls, record keeping and risk register.
  • Integrate the Scheme’s Integrated Risk Management Framework with the Scheme’s risk register.
  • Make a recommendation to the Trustee that the Scheme’s Report and accounts be approved, although the Trustee will always need to give its formal approval.

Administration Committee (ASC)

The role of monitoring the administration services, which are currently provided by XPS Administration, sits with the Administration Committee. It is also responsible for considering the payment of any discretionary benefits, including those payable following the death of a member.

Click or tap on the plus sign to see some of the tasks the ASC are responsible for

  • Agreeing the exact nature and extent of the services provided to the Trustee by the Scheme Administrator.
  • Agreeing the standards to which the Scheme Administrator is required to work.
  • Audit of member benefits and benefit rectification exercises.
  • Drafting and keeping under review a formal agreement for the provision of services between the Trustee and the Scheme Administrator.
  • Agreeing and keeping under review the method and frequency with which the Scheme Administrator is required to report on its activities to the Committee and the Trustee Board.
  • Taking decisions on behalf of the Trustee Board in relation to certain queries and complaints from members, including Internal Dispute Resolution Claims.
  • Taking decisions on behalf of the Trustee Board in relation to ill health retirement and death in service, deferment or retirement cases.
  • Undertaking a full review of the Scheme’s governing documentation, when considered necessary, and consulting with the Company on any proposed changes or consolidating of documents.

Valuation Committee (VSC)

At least every three years a formal review of the financial health of the Scheme is undertaken. This process is known as an Actuarial Valuation, the results of which are found in the Valuation Update section. The Valuation Committee oversees this process, including any dialogue with the Company, and the preparation of any Valuation related correspondence, on behalf of the Trustee Board.

Click or tap on the plus sign to see some of the tasks the VSC are responsible for

  • Working with the Scheme Actuary regarding the preparation of each Valuation, and interim funding assessments, in accordance with agreed timetables and statutory deadlines.
  • Liaising with the Company to discuss and negotiate the Valuation, making recommendations to the Trustee Board regarding approval of the final agreed outcome.
  • Securing the agreement of the Company to those matters where required, including Valuation assumptions.
  • Commissioning and taking advice relevant to the Valuation from advisers including the Actuary and the covenant, investment, and legal advisers.
  • Liaising with The Pensions Regulator when necessary.
  • Following each Scheme valuation, work with the Scheme Actuary regarding the preparation of a schedule of contributions, recovery plan and other funding documents as required (and to the extent required) by legislation, the Trust Deed, or other legal principle, and to approve such documents.

Company-Appointed Trustee Directors

Phil Wilbraham – Chairman

Paula Stannett

Fraser Brown

Christelle Lubin

Member-Nominated Trustee Directors

Terry Mackay

Mohammad Suhayb Riaz

John McCoy

1x Vacancy

Independent Trustee

The Law Debenture (BAA) Pension Trust Corporation (generally represented by Mike Jaffe, Samantha Pitt or Sally Minchella)

Secretary to the Trustee

Alice Parris — Secretary to the Trustee

The Trustee is supported by a number of advisers:

Scheme Actuary
Kirstie Nicholls FIA, Mercer Limited

Investment advisers
Redington Limited

Covenant advisers
PricewaterhouseCoopers (PwC)

Auditors
Crowe UK LLP

Bankers
Barclays

Custodian services
JPMorgan Chase

Administrators
XPS Administration

Legal advisers
CMS Cameron McKenna Nabarro Olswang LLP

Communication advisers
Concert, A Gallagher Company

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