Docusign Envelope ID: 7C50003C-051D-4E0C-907A-F452AD5C4EA2
UNITED TECHNOLOGIES CORPORATION (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2023
STATEMENT REGARDING DC GOVERNANCE
Trustee knowledge and understanding
The Trustee Board comprises six trustee directors. Sections 247 and 248 of the Pensions Act 2004 set out the requirement for Trustee Directors to have appropriate knowledge and understanding of the law relating to pensions and trusts, the funding of occupational pension schemes, investment of scheme assets and other matters to enable them to exercise their functions as trustees properly. This requirement is underpinned by guidance in the Pension Regulator’s Code of P ractice 07. The comments in this section relate to the Trustee as a body in dealing with the whole Scheme and are not restricted to money purchase benefits. The Trustee aims to remain conversant with the Scheme’s trust deed and rules as well as all other S cheme documents such as the Statement of Investment Principles (SIP), the risk register and current policies, e.g. conflicts of interest. They do so through their experience in governing the Scheme, as well as specific activities over the Scheme year and access to professional advice. The Trustee aims to achieve and maintain knowledge and understanding of the law relating to pensions and trusts, the funding of occupational schemes and investment of scheme assets through a combination of training and taking professional advice. The Trustee has put in place arrangements for ensuring that Trustee Directors take personal responsibility for keeping themselves up to date with relevant developments and carry out a triennial self-assessment of training needs which includes a questionnaire. The Secretary to the Trustee reviews the self-assessments and arranges for training to be made available to individual Trustee Directors or to the Trustee as a board as appropriate. Specifically, this training has recently focussed on:
Equity, Diversity and Inclusion
In addition, the Trustee receives advice from professional advisors, and the relevant skills and experience of those advisors is a key criterion when evaluating advisor performance or selecting new advisors. Professional advisors attend quarterly Trustee meetings and are required to provide updates on topical issues in their respective fields of expertise. All of the existing Trustee Directors have completed the Pension Regulator’s Trustee Toolkit and new Trustee Directors are required to complete this within six months of taking up office. There is a policy in place which details the process by which new Trustee Directors are appointed, four are chosen by the employer and two are member nominated Trustee Directors. One Trustee Director, Joe Fazzino resigned during the Scheme year on 17 May 2023. Two new Trustee Directors, Greg Hawes (appointed 8 March 2023) and Julie Sullivan (appointed 17 May 2023) were subsequently appointed during the Scheme year to replace Joe Fazzino and Steven Hill, who previously resigned on 31 December 2022. The two new Trustee Directors have completed the Pension Regulator’s Trustee Toolkit as per the Trustee’s appointment process. Taking account of actions taken individually and as a trustee body, and the professional advice available to them, the Trustee considers that it is enabled properly to exercise its functions as Trustee.
DC Scheme governance
As Trustee Directors of the UTC (UK) Pension Scheme, we have reviewed and assessed that our systems, processes and controls across key governance functions are consistent with those set out in the Pensions Regulator’s: DC Code of Practice which applied to governing bodies of occupational, personal and public-service pension schemes during the Scheme Year. ‘A quick guide to the Chair’s Statement’ document. Technical appendix to the quick guide. Regulatory guidance for defined contribution schemes.
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