Pension Fund Trustees
Responsible for administering the trust in accordance with its governing documents and the disposition of the funds in the trust, pension fund trustees fiduciary duties also extend to encompass a number of other related obligations. For many years trustees have sought protection from liability by insisting upon the incorporation in trust deeds of ‘exoneration clauses’, but public and market sentiment has tended to swing away from reliance upon such provisions with beneficiaries seeking to hold someone accountable for any (perceived) shortcomings.
Pension Fund Trustee Liability Insurance provides cover for defending the trustees against claims in respect of their wrongful acts, the trust and the employer company where they are permitted or required to indemnify the trustee (including any exoneration clause), legal representation and the trust following a fidelity loss.
Cover can extend to include loss of documents, defence costs, spouses and estates of trustees and (where permissible) fines and penalties imposed by any pensions regulators.
Policies can be extended to include employees where they are deemed to have acted as a trustee. It can also be extended to include trustee or employee dishonesty, pursuit of service providers and theft of the trusts property.