INTRODUCING YOUR NEW TRUSTEE BOARD
For members of The Scottish Widows Retirement Benefits Scheme
January 2019 WELCOME FROM THE CHAIR
In November 2018, Lloyds Banking Group and understanding of the SWRBS to the (the Group) announced a proposal to Board. In addition to the three transferring change the Trustee of the Scottish Widows Trustee Directors, Jocelyn Blackwell is Retirement Benefits Scheme (SWRBS) also an Independent Trustee Director for from Scottish Widows Pension Trustees LBGPTL, as she was for SWPTL, bringing Limited (SWPTL) to Lloyds Banking Group additional experience of working on Pensions Trustees Limited (LBGPTL). both Boards. LBGPTL is currently the Trustee for Lloyds You can read more about the LBGPTL Bank Pension Scheme No. 1 (Lloyds No. 1), Trustee Directors later in this update. Lloyds Bank Pension Scheme No. 2 (Lloyds No. 2) and HBOS Final Salary Pension My fellow Trustee Directors on the Scheme (HBOS FSPS). LBGPTL Trustee Board and I are committed to running the four schemes in the best SWPTL wrote to you in November 2018 interests of all members and we have a about the proposal, and we’re pleased to strong team of Lloyds Banking Group confirm it was agreed by the Group and colleagues to support us. We’ll continue both Trustee Boards, and the transfer of to communicate regularly with members Trustee to LBGPTL is now complete. and to report on the funding and running Although the four pension schemes will of each pension scheme. be managed by a common Trustee Board, You’ll find some frequently asked questions the schemes remain legally separate and later in this update and if you have any member benefits and pension payments questions that are not answered here, aren’t affected in any way. please get in touch with the Scheme I’d like to thank the SWPTL Trustee administrator (contact details can be Directors for their commitment and found on the back page of this update). dedication in fulfilling their responsibilities. Don’t forget, you can also find lots of It is recognised and appreciated by the useful Scheme information on the Group and LBGPTL Board. Group Pensions website at lloydsbankinggrouppensions.com We believe that the appointment of LBGPTL will benefit SWRBS members Harry Baines through simplification, streamlined decision Chair of Lloyds Banking Group Pensions making and closer access to specialist Trustees Limited investment and operational support teams in the Group. The Lloyds No.1, Lloyds No.2 The SWPTL Trustee Directors and HBOS FSPS Schemes have been run transferring to LBGPTL are very much by a combined board for several years looking forward to working with our now, and have developed a close working new colleagues on the expanded relationship with the Group at senior LBGPTL Board, pulling together all of stakeholder level, which we expect will also our experience, knowledge and skills apply to matters affecting SWRBS. across the Schemes to continue to The LBGPTL Trustee Board has increased deliver governance in the best interests from nine to 12 Trustee Directors, with three of all members. existing SWPTL Trustee Directors joining Kevin Doerr LBGPTL providing continuity, experience former SWPTL Trustee Director MEET THE NEW TRUSTEE BOARD
As your Trustee Board, we’re responsible for making sure the schemes are run properly and your benefits are secure. We’re committed to acting in the best interests of members. All of the Trustee Directors have been selected for their wide experience, skills and pensions industry knowledge. Some have been nominated by Scheme members, some appointed by Lloyds Banking Group and others are independent professional trustees.
We look after your interests We’re here to act in the interests of Scheme members and help to make sure you’re treated fairly in accordance with the rules of the Scheme. We are independent of Lloyds Banking Group.
We act responsibly We act in accordance with Scheme rules, and the law.
We work collaboratively We work closely and constructively with sponsors of the schemes to help make sure members get the pensions benefits they’ve been promised.
Harry Baines Harry is an Employer-Appointed Trustee Director and Chair of the LBGPTL Board of Directors. He worked for the Group for 13 years before retiring from his role as Group General Counsel and Company Secretary. Harry is also Chair of the Trustee Board of the PACE Pension Scheme and Vice Chairman of the Manchester Building Society.
Geoff Askew Geoff is a Member-Nominated Trustee Director. He worked for the Group for 31 years before retiring, and has 15 years’ experience as a Member-Nominated Trustee of the Halifax Retirement Fund, Trustee Director of the HBOS FSPS, and now the LBGPTL Schemes. Geoff is also a Chair of Magistrates in North Staffordshire.
Jocelyn Blackwell Jocelyn is an Independent Trustee Director of LBGPTL and was also an Independent Trustee Director for SWPTL. She is a member of the Defined Benefits Operations Committee and has many years’ experience in pension scheme administration. Jocelyn is also a Trustee Director at NOW: Pensions, a large multi-employer pension scheme. Roger Boyes Roger is an Employer-Appointed Trustee Director and Chair of the LBGPTL Investment and Funding Committee. He is an accountant who held a variety of senior positions in industry, including that of Group Finance Director of Halifax plc for six years. Roger is also a Director of Northern Foods Trustees Limited.
Sally Bridgeland Sally is an Independent Trustee Director and a member of the Investment and Funding Committee. She is an actuary and has experience of large pension schemes as both Chief Executive of BP Pension Trustees for seven years and, currently, as a Trustee of NEST Corporation.
Richard Conway Richard is a Member-Nominated Trustee Director and member of the Investment and Funding Committee. He is Head of Governance and Performance Assessment for Fund Investments in Scottish Widows.
Michelle Cracknell Michelle is an Employer-Appointed Trustee Director. She is a pensions actuary with 30 years’ experience in pensions, holding Director positions at advice firms and providers. Most recently (from 2013 to 2018), Michelle was the Chief Executive of The Pensions Advisory Service. She is a regular commentator on pension matters in the media and at consumer events.
Kevin Doerr Kevin is an Employer-Appointed Trustee Director and was the with-profits actuary for Scottish Widows from 2005. He took early retirement in 2017 and is a pensioner member of SWRBS. Kevin has recently been appointed to the Disciplinary Board of the Institute and Faculty of Actuaries.
John Hope John is an Employer-Appointed Trustee Director. After qualifying as an accountant he held various senior positions in investment management, corporate development and investor relations. He has 15 years’ trustee experience, serves on six Trustee Boards and chairs the Investment Committee on four of these Boards. John has also previously served as an external co-opted member of the LBGPTL Investment and Funding Committee. Shirley Marsh Shirley is a Member-Nominated Trustee. She retired from the Group in 2011 after 36 years’ service where she had a number of senior roles, including Head of Group Pensions. Shirley is also a Trustee for a Local Government Pension Scheme and the Bank Workers Charity.
The Law Debenture Trust Corporation plc. Represented by Mark Ashworth Mark is an Independent Trustee Director and is Chair of the Defined Benefits Operations Committee. He chairs the Law Debenture’s pension trustee practice and is a past president of the Society of Pension Professionals. Mark has been an Independent Trustee for over 15 years and sits on a number of other Trustee Boards, including BP, Royal Mail, Sainsbury’s and Your Tomorrow (a Lloyds Banking Group Pension Scheme).
Law Debenture Governance Services Limited Represented by Vicky Paramour Vicky is an Independent Trustee Director and previously chaired the Board of SWPTL. She is a pensions actuary with over 20 years’ experience in pensions and sits on eight other Trustee Boards, four of which she chairs. Vicky’s appointments include Marks & Spencer, Coca-Cola, Next and the Lloyds Bank Offshore Pension Scheme.
Appointment of future Member-Nominated Trustee Directors (MNTDs) LBGPTL will continue to use its selection process to appoint MNTDs. Broadly, the existing process for the appointment of MNTDs is to invite nominations from active and pensioner members of all schemes during a set period of time, by direct notification (post or email) with additional information available on the Group Pensions website. When the nomination period has ended, a Selection Panel reviews all nominations and draws up a shortlist of preferred candidates for interview. An interview panel consisting of members of the Trustee Board (including a current MNTD), Lloyds Banking Group, and recognised Trade Union representatives undertake the interviews. The process doesn’t mean there will be equal representation from each scheme; it ensures that the candidate with the skills and experience to best complement the Board is appointed. The above process will continue to be reviewed from time to time in line with best practice. Active and pensioner members will be contacted with further details of the process when LBGPTL is next seeking MNTDs. FREQUENTLY ASKED QUESTIONS Does this change have any engagement between the Trustee Board impact on members’ benefits? and the Group at a senior level. The larger Board of Trustee Directors No, the change has no impact on the will also provide a broader range of benefits of members of any of the experience and skills. schemes that are run by Lloyds Banking Group Pensions Trustees Limited (LBGPTL). Will the change to the governance structure alter Why has the Group made or dilute the powers and this change? responsibilities of the Trustee The Group recognises the commitment Board of my Scheme? and dedication of the Directors of No, the single Trustee Board has a duty Scottish Widows Pension Trustees Limited to govern each scheme in the interests of (SWPTL). However, it believes that the that scheme’s members and that will not governance structure for the Scottish change in any way. The Trustee Board has Widows Retirement Benefits Scheme the same powers and responsibilities (SWRBS) will be enhanced by the transfer as before. of the Trustee to LBGPTL. The Trustee Board has a duty to act in This change brings the SWRBS in line the best interests of members, focussing with the governance model for all of on the security and payment of all the other large schemes in the Group members’ benefits. and will provide greater dialogue and SCHEME INFORMATION
The latest SWRBS Summary Funding Statement (as at 1 July 2018) and Annual Report & Accounts (as at 30 June 2018) are now available on the Group Pensions website and can be found at: lloydsbankinggrouppensions.com/schemedocuments If you’d like a printed version of the Summary Funding Statement or Annual Report & Accounts, please contact the Scheme administrator (contact details can be found on the back page of this update). You’ll also find lots of other useful Scheme information on the Group Pensions website at: lloydsbankinggrouppensions.com
IS YOUR NOMINATION FORM UP TO DATE? If you die, your loved ones could get money from the Scheme. Have we got the right people on record for you? Tell us by filling in a nomination form. It’s important to keep your nomination form up to date as your circumstances change. You can download a nomination form from the Group Pensions website at: lloydsbankinggrouppensions.com/forms If you’ve already completed a nomination form and your details are up to date, there’s no need to complete a new form.
LBGPTL COMMUNICATIONS You’ll notice this communication looks different to what you’ve received in the past. This is because LBGPTL uses different brand guidelines to SWPTL and this will continue for future communications from your new Trustee Board. CONTACT US
If you have any questions about the Scheme, you’ll find lots of information on the Group Pensions website: lloydsbankinggrouppensions.com
Alternatively, you can contact the Scheme administrator:
Scottish Widows Staff Pensions, Post Handling Centre, St James’s Tower, 7 Charlotte Street, Manchester, M1 4DZ
0131 203 2720
PENSIONS