Half (50 per cent) of defined benefit (DB) pension schemes are expected to move to the corporate sole trustee model by 2028, research from Hymans Robertson has found.

Quicker decision-making and lower demands on company management time were seen as the main benefits of moving to a corporate sole trustee model, cited by 36 per cent of respondents, respectively, while a further 28 per cent were expecting lower costs.

However, Hymans Robertson argued that while using the sole trustee model has many advantages, schemes should be mindful that other models, such as appointing a professional trustee as chair or co-trustee, also offer similar benefits.

Commenting on the findings, Hymans Robertson head of sole trustee services, Shani McKenzie, said: “Our research shows there’s a significant appetite for the sole trustee governance model among schemes of all sizes – only a small minority of financial directors and CFOs said they’re unfamiliar with the model.

“And, over recent years, corporate sole trusteeship has been growing in excess of 10 per cent year-on-year. This is due to a mix of factors including improved funding positions, which brought many schemes closer to buyout or needing to consider their endgame options.

“The skills and experience that corporate sole trustees have in these areas are highly sought after, and one of the main reasons that schemes may also look to this option for additional expertise.

“Skills gaps on trustee boards also created demand for other governance approaches, such as appointing a professional trustee as chair or co-trustee.

"These options can have the benefit of improving decision-making while allowing a scheme to retain the benefits of a trustee board, such as diversity and direct member representation, for example.”

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