Pension Trustee Code of ConductPromoting ethical best practices for pension plan trustees
Pension Trustee Code of Conduct
Pension Trustee Code of Conduct Fact Sheet
What is Covered?
The Pension Trustee Code of Conduct outlines 10 fundamental ethical principles that are universally applicable to pension plan trustees:
- Act in good faith and in the best interests of the plan participants and beneficiaries.
- Act with prudence and reasonable care.
- Act with skill, competence, and diligence.
- Maintain independence and objectivity by, among other actions, avoiding conflicts of interest, refraining from self-dealing, and refusing any gift that could reasonably be expected to affect their loyalty.
- Abide by all applicable laws, rules, and regulations, including the terms of the plan documents.
- Deal fairly, objectively, and impartially with all participants and beneficiaries.
- Take actions that are consistent with the established mission of the plan and the policies that support that mission.
- Review on a regular basis the efficiency and effectiveness of the plan's success in meeting its goals, including assessing the performance and actions of plan service providers, such as investment managers, consultants, and actuaries.
- Maintain confidentiality of plan, participant, and beneficiary information.
- Communicate with participants, beneficiaries, and supervisory authorities in a timely, accurate, and transparent manner.
How Can a Pension Plan Comply?
Compare the CFA Institute Pension Trustee Code of Conduct and Guidance for Compliance to your plan’s existing code of conduct to identify gaps and determine whether the plan’s current governance policies and procedures comply with the Pension Trustee Code of Conduct.
Revise or establish policies and procedures as needed to align with the Pension Trustee Code of Conduct.
Complete the fillable PDF Pension Plan Compliance Notification Form.
How was the Pension Trustee Code of Conduct Developed?
CFA Institute developed the Pension Trustee Code of Conduct with a multinational coalition that included:
- Council of Institutional Investors (United States)
- Organization for Economic Cooperation and Development
- National Association of Pension Funds (United Kingdom)
- Swiss Association of Pension Funds
- Hong Kong Retirement Schemes Association
- Dutch Association of Industry-wide Pension Funds