TrustEase or Agent ….. You Decide!
Where the Company is the trustee of a
scheme, the Insolvency Practitioner assumes responsibility for dealing with
it. Alexander Forbes Trustee Services can help, either by acting as your
agent or by becoming the trustee under our TrustEase
service. Here are some points to consider when making a decision as to
which way to go:
TrustEase
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Pros
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Cons
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Professional trustee replaces you as trustee to the scheme
by an executed Deed of Removal & Appointment.
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You will retain employer responsibility to the pension
scheme i.e. to provide salary details, employment dates etc.
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AFTS will open a trustee bank account to meet pension
scheme expenses.
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All pension scheme expenses to be paid to the trustees up
front. Quote attached to this report.
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Once AFTS are appointed as trustee, you will no longer
need to keep your insolvency appointment open for the pension scheme unless a
DTI claim is needed (see opposite).
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You will only need to keep an insolvency appointment open
if a claim to the DTI for missing pension contributions is to be submitted.
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TrustEase
will save you time and money by not involving you with the pension scheme
wind-up. Cost of the Deed will be absorbed within the time saved by AFTS.
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Pension scheme members benefit from having a professional
trustee on board remunerated at a fixed cost from the insolvency assets.
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You will transfer the trustee risk of the pension scheme
to a professional trustee.
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AFTS will deal with all pension enquiries that you receive
both during and after your insolvency appointment.
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All of the legal and fiduciary risks inherent in acting as
trustee are passed to AFTS
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Agent
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Pros
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Cons
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AFTS remunerated quarterly which may ease your cash flow
for this case.
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Dealing with pension schemes can often be protracted and
you cannot close your insolvency appointment until all pension matters have
been resolved. Particularly relevant to Administration timescales.
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AFTS as pension agent will deal with all pension enquiries
for the scheme on your behalf.
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You have to sign all documentation, including member
option forms, on behalf of the pension scheme trustee. Adds time and cost.
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Pension scheme members benefit from there being a
professional trustee assisting you, remunerated from the insolvency assets.
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The risk of acting as trustee remains with you both during
and after your insolvency appointment.
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All of the legal and fiduciary responsibilities in respect
of the scheme remain with the Insolvency Practitioner.
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