The RNIB Retirement Benefits Scheme

The Scheme is a hybrid occupational pension scheme, consisting of a defined benefit (DB) section, which provides benefits based on a member’s salary and includes a defined contribution section for members with a salary cap on their DB benefits. With effect from 1 April 2019, the Scheme operates as a fully defined contribution (DC) arrangement, which provides benefits based on a member’s accumulated fund.

The Trustee’s role in a scheme offering defined benefits

As a Trustee of a scheme offering DB benefits, you have a responsibility to ensure there is enough money in the Scheme to pay members’ pensions as and when they need to be paid.

To see how much money is in the Scheme, ‘valuations’ need to be carried out, no less than once every three years. This assesses the assets and the liabilities of the scheme. However, if the scheme is not fully funded, a recovery plan must be drawn up and submitted to tPR. The recovery plan sets out how much will be paid into the Scheme and over what period.

You also have to be responsible for monitoring Scheme investments and keeping an eye on the financial strength and health of the employer who is standing behind the Scheme (the employer covenant).

The Trustee’s role in offering defined contribution benefits

In schemes offering DC benefits the individual member makes decisions about the way they save and what they do with their pension savings when they reach retirement age.

As a member of a scheme committee offering DC benefits, you have a responsibility to support your members in making informed decisions.