Marks and Spencer 2015 Annual Report Download - page 79

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OUR PERFORMANCEFINANCIAL STATEMENTS GOVERNANCE OUR BUSINESS
77
ANNUAL REPORT AND FINANCIAL STATEMENTS 2015
The Group operates a defi ned benefi t
pension scheme (the ‘Scheme’) for
employees with an appointment date
prior to 1 April 2002.
The results of the triennial actuarial
valuation of the Scheme as at 31 March 2012
revealed a defi cit of £290m. This represents
a substantial reduction in defi cit from £1.3bn
as at 31 March 2009. The next valuation is
due as at 31 March 2015. Funding progress
is closely monitored and the investment
derisking journey has continued since the
last valuation.
The assets of the pension scheme, which are
held under trust separately from those of
the Group, are managed by the Board of the
Pension Trust (‘Trustee Board’). The Trustee
Board comprises four company nominated
directors, including the Chairman, Graham
Oakley; three member nominated directors
and two independent directors. All directors
are appointed for a fi ve-year term and
may stand for a second term. The Trustee
Board operates three main committees:
Management and Governance, Investment,
and Actuarial Valuation, which has been
convened earlier this year in preparation
for the 2015 valuation.
The Trustee Board has a business plan
against which progress is measured on an
ongoing basis in a similar approach to the
Group Board. There is also an annual Board
E ectiveness Review and both the Trustee
Board and the Investment Committee
hold annual strategy days which help drive
the long-term agenda and the business
plan priorities.
Each Trustee Board director has an
individual training plan, which is based on
the Pension Regulator’s Trustee Knowledge
and Understanding requirements and
tailored to address any skill gaps and
specifi c committee roles. The majority of
the Trustee Board members hold the
Pensions Management Institute Award
in Trusteeship.
All advisers, investment managers and
suppliers are appointed through a rigorous
tender process. They are monitored via
quarterly reports and periodic meetings
and there is also a rolling programme of
both informal and formal adviser reviews.
In addition to six monthly reports from EY
as covenant adviser, the Trustee Board
also receives presentations from the Chief
Finance O cer after the Year and Half
Year results.
The Scheme is a signatory to the UN
Principles for Responsible Investment and
the Trustee has partnered with a specialist
engagement ser vice, Hermes Equity
Ownership Services (EOS), to exercise its
global equit y voting rights in accordance
with a detailed Trustee policy, which
addresses a range of governance, social
and environmental issues. EOS has also
enhanced the Trustee’s stewardship and
governance oversight of investee
companies by engaging with companies,
ona global basis, where management is
considered not to be acting in the best
long-term interests of investors. The
results of these voting and engagement
activities are published quarterly on the
M&S Pension Scheme’s website. The Scheme
is also a signatory to the Financial Reporting
Council’s UK Stewardship Code.
PENSIONS GOVERNANCE
GOVERNANCE