Trustees’ Liability Insurance

Trustees can incur liabilities exactly in the same way as directors and officers. They are expected to exercise a reasonable degree of care in the discharge of their duties as trustees and can be taken into court if this duty is not discharged.

Since the coming into force of the Retirement Benefit Act, in 2000, the number of Retirement Benefit Schemes has increased rapidly. The retirement benefit scheme trustees are expected to excise such care and skills as is reasonable in the circumstances. In past, employees who were denied their retirement benefits left the matter at that and usually retired to penury. Not anymore. there are no several cases pending in courts where retired employees are suing their trustees for what they perceive to be wrong calculation of retirement benefits, poor investment returns among them.