Who's who in your pension fund?
A quick guide to the main players and institutions...
This is an overview of the roles and responsibilities of key figures in your pension fund, from trustees to ordinary members.
Pension fund members
are people like you and me with a workplace pension. They pay in money each month and draw on these savings on retirement. It's up to us to tell our pension fund how we'd like the funds invested and what ethical issues they could engage with companies on.
A
pension fund
is the body that manages the pension. It ensures investments and payouts are carried out and that the fund stays afloat. A pension fund is required to state its policy on socially responsible investment and (according to the legal opinion by the United Nations and law firm Freshfields Bruckhaus Deringer) should consult members regularly on the issues they care about.
Trustees
are the directors of the pension fund. Some trustees are nominated by employees and others by the company. They oversee the pension fund and have a duty to act prudently and in the best interests of members. Trustees respond to concerns of members and instruct fund managers on how to invest in and engage with companies.
Fund managers
are financial experts who make decisions about investment of a pension's funds. They may be based in-house or externally in City firms. They manage the investment portfolio, including buying and selling assets. Fund managers are responsible for monitoring and engaging with companies on their ethical, social and environmental performance as instructed by the pension fund.
Companies
are invested in by fund mangers. The directors of the company run their business, paying out profits to shareholders. Issues like good corporate governance and management of social and environmental issues can have an influence on their long term success.