Pension trustees should strengthen their financial, legal and technology skills to protect members’ retirement savings from investment losses, fraud and cyber threats.
Speaking at the Institute of Pension Management’s 8th Annual Pension Conference in Mombasa, Octagon Africa Group Chief Executive Fred Waswa urged trustees to scrutinise investment decisions, challenge service providers and assess whether returns are sufficient to preserve members’ savings against inflation.
He said trustees need to take a more active role in pension scheme management rather than relying solely on reports from fund managers and administrators, particularly under defined contribution schemes where members bear investment risks.
Waswa also called for closer scrutiny of alternative investments, including infrastructure funds, to ensure they deliver sustainable returns aligned with members’ long-term retirement needs.
The conference highlighted growing risks facing pension schemes, including regulatory compliance, data protection and cybersecurity, as digital platforms and artificial intelligence become more widely used in pension administration.
Waswa said trustees needed sufficient technological knowledge to question service providers, identify vulnerabilities and safeguard members’ personal and financial information.
He identified financial literacy, legal knowledge and people management as essential governance skills, while stressing the importance of keeping accurate records of board discussions and decisions to demonstrate accountability and help resolve disputes.
Regular training, he said, would help trustees keep pace with changing regulations, investment practices and technology while improving decisions on behalf of scheme members.
The Institute of Pension Management, a subsidiary of Octagon Africa Financial Services, is expanding training for trustees and pension professionals to strengthen governance, compliance and scheme management.
Institute of Pension Management, Senior Training Coordinator Faye Wanjiro says the Institute, which was established in 2016 to address skills gaps and promote professional standards, develops its programmes using industry research, experienced trainers, case studies and participant feedback.