The Pensions Management Institute (PMI) is collaborating with a trustee liability insurance provider to improve governance and reduce risk for trustee boards through training and development.

Under the project, in partnership with the Occupational Pensions Defence Union (OPDU), boards could get reduced premiums if they are able to obtain a Certificate of Continuing Professional Development (CDP) each year.

Requirements for the CDP are that all trustee board members must complete a minimum level of training and development during the year, by completing a PMI Trustee Group training needs analysis or through an existing diagnostic analysis. This must then be signed off by the trustee chair, the secretary to the trustees or the pensions manager.

Vince Linnane, PMI chief executive, said: "We would hope that trustee boards see this as blue riband not red tape. We are not adding to their work rather ensuring that they get a higher recognition from employees, pensioners and the company for the hard work and diligence that they are already undertaking and displaying.

"The best trustee boards are already delivering well above and beyond the minimum – they should be publicly lauded for their efforts."

Linnane added that the CDP should be regarded as a "vital factor" in raising confidence levels and awareness of the work across all sections within pension schemes.

OPDU chairman Jonathan Bull said: "Anything that raises standards and helps to reduce risk can only be good for the pensions community. Whilst every application for insurance will be treated on its merits, the PMI Trustee Group CPD Certificate will play a very positive role in the assessment of trustee indemnity insurance premium ratings and it provides a useful tool to help trustees to minimise risk."

First published 20.11.2012

monique_simpson@wilmington.co.uk