Would anyone be happy to share how they reward Pension Trustees that are now retired/no longer employees?
I am interested in the method of payment – I have experienced being paid from the scheme on submission of a timesheet (not my favourite!), insisting the Trustee sets up a Ltd Company and invoice the Company or scheme, make the Trustee an employee again but on fixed term basis to match their term of office or simply only being paid expenses. I cannot find any guidance anywhere on this, but want to make sure what we do is fair and does not create any unintended issues.
We pay pensioner trustees a fixed fee for each full trustee meeting plus any other expenses incurred (eg travel) from the pension scheme bank account. The trustees submit a claim with receipts for expenses.
The professional trustee invoices and is paid for services as any other supplier. The member nominated trustees have a small payment made each quarter direct from the pension trustee bank account, and expenses are submitted to the pension plan accounts team separately.
In a previous company, we had one retired employee who we agreed to pay a day rate, but this only covered the meetings they attended. They could also invoice for travel expenses. On reflection they should have been paid more as there are ad hoc activities between meetings and a substantial amount of pre reading to do. We did not put them on the payroll, they invoiced the company.
Hi Tina. We have 3 trustees who we pay through the payroll with their fees subject to tax and N.I. as per normal. They are engaged on a specific Trustee contract for a fixed period.