SSAS Trustee Responsibilities: What Every Trustee Needs to Know

The Dual Role of SSAS Member-Trustees

One of the most distinctive features of the SSAS structure is that members typically serve simultaneously as trustees of the scheme. This dual role — member and trustee — is what gives SSAS arrangements their flexibility and their responsibility. As a trustee, you hold legal ownership of scheme assets on behalf of all beneficiaries. As a member, you are simultaneously one of those beneficiaries.

This is not a conflict that the law ignores. The Pensions Act 1995, the Trust Act 2000, and subsequent pension legislation impose clear duties on trustees that must be observed regardless of a trustee's personal interest as a member.

Core Trustee Duties

1. Acting in Members' Best Interests

The foundational duty of any trustee is to act in the best interests of all scheme beneficiaries. In an SSAS, this means all current and future members and their dependants — not just the majority of trustees. A trustee who is also the majority shareholder of the sponsoring employer cannot use that position to direct scheme assets to serve corporate interests at the expense of members' retirement security.

In practice, decisions should be made collectively and minuted. Any trustee who believes a proposed decision is not in members' interests should raise this formally and, if necessary, seek the pensioneer trustee's guidance.

2. Investment Duties

Trustees have a duty to invest scheme assets prudently. The Trustee Act 2000 requires trustees to exercise reasonable care and skill in selecting and reviewing investments, to diversify where appropriate, and to take professional advice on investment matters.

For SSAS trustees, this typically means:

• Conducting proper due diligence before acquiring any investment asset
• Obtaining independent valuations for property purchases
• Ensuring all investments are within the scheme's permitted investment powers
• Regularly reviewing the investment portfolio and documenting the review
• Taking professional advice for specialist investments

When investing in commercial property, trustees must ensure the purchase is at open market value, as evidenced by an independent RICS valuation. For more detail on valuation requirements, see our guide on SSAS property valuation requirements.

3. HMRC Compliance

The scheme administrator (who may be the pensioneer trustee or a scheme member) has statutory obligations to HMRC including filing annual scheme returns, reporting certain events within specified timescales, and ensuring the scheme does not make "unauthorised payments" as defined by pension tax legislation.

Unauthorised payments — which include loans to members, certain investments in residential property, and transactions not conducted at arm's length — carry significant tax charges. The payment itself is taxed at up to 40%, and the scheme may face a surcharge of up to 15%. Trustees can also be personally liable for scheme tax charges in certain circumstances.

Matt Lenzie notes: "In my experience, the most common compliance failures in SSASs arise not from deliberate wrongdoing but from a misunderstanding of where the boundaries lie. This is precisely why the pensioneer trustee's oversight role is so valuable — they will flag issues before they become problems."

4. Record-Keeping

Trustees must maintain adequate records of:

• All trustee decisions (investment approvals, contribution receipts, benefit payments)
• All scheme accounts and financial transactions
• Member records including contributions, transfer values, and projected benefits
• Investment documentation (valuations, legal title documents, loan agreements)

Records must be kept for at least six years. For property assets, the title deeds, RICS valuation, and any mortgage documentation must be retained for the life of the investment and beyond.

5. Acting Collectively

In most SSAS structures, trustee decisions must be made collectively — by a majority or unanimously depending on the scheme rules. This means individual trustees cannot unilaterally direct scheme assets. Regular trustee meetings (at least annually, and more frequently when significant decisions are pending) should be held and properly minuted.

The Pensioneer Trustee's Role

While member-trustees carry the primary governance responsibilities, the pensioneer trustee acts as an essential check on the scheme's compliance. They will typically:

• Review proposed investments for HMRC compliance before execution
• Flag transactions that may constitute unauthorised payments
• Submit annual scheme returns to HMRC
• Maintain scheme documentation
• Provide guidance on trustee duties and pension legislation

The pensioneer trustee can refuse to sanction a proposed transaction if they believe it would breach pension legislation. This veto power is an important safeguard, not a bureaucratic obstacle.

Connected Party Transactions

SSAS trustees face particular scrutiny when transacting with connected parties — the sponsoring employer, other group companies, or connected individuals. The key rules are:

• The SSAS can purchase property from the sponsoring employer, but only at open market value with independent evidence
• Loanback to the employer must comply with HMRC's strict conditions (no more than 50% of scheme assets, commercial interest rate, five-year term, first charge security)
• The SSAS cannot lend to members or make arrangements that effectively put scheme funds into a member's hands before retirement age

For more on loanback arrangements, see our guide on SSAS loanback (coming in our next cluster of guides).

Liability of Trustees

Trustees can be held personally liable for breaches of trust, including:

• Losses arising from imprudent investments
• Scheme tax charges arising from unauthorised payments
• Regulatory penalties for late or incorrect HMRC reporting

Professional indemnity insurance is not routinely purchased for SSAS trustee positions, but in schemes with very large assets or complex investment strategies, trustees should consider whether additional protection is appropriate.

Trustee Training and Knowledge

The Pensions Regulator recommends that all trustees undertake relevant training to understand their duties. For SSAS trustees specifically, this should cover:

• Basic pension trust law and trustee duties
• HMRC's rules on permitted and prohibited SSAS investments
• The specific rules on loanback and connected party transactions
• Property investment due diligence requirements

The pensioneer trustee firm will typically provide guidance materials and can answer specific questions as they arise.

Property Investment Decisions as a Trustee

When approving a commercial property purchase, trustees should ensure they have considered:

• Independent RICS valuation confirming open market value
• Solicitor's report on title confirming clean ownership
• Tenant covenant strength (where the property is let)
• Rental yield and its coverage of any borrowing costs
• Impact on scheme diversification
• Liquidity implications of a large illiquid asset

To understand how finance can be arranged for an SSAS property purchase, contact our team or visit our SSAS property finance page.

"Being an SSAS trustee is a real responsibility, not a rubber-stamping exercise. The good news is that with a competent pensioneer trustee alongside you, the compliance burden is very manageable. The key is to understand the rules well enough to know when to ask for guidance."

— Matt Lenzie, Former Banker & Corporate Finance Partner

Key Takeaways

• SSAS member-trustees have genuine legal and fiduciary duties under trust law and pension legislation
• The primary duty is to act in the best interests of all scheme beneficiaries
• Investments must be prudent, within permitted powers, and properly documented
• Unauthorised payments carry severe tax charges and potential personal liability
• The pensioneer trustee provides compliance oversight and can veto non-compliant transactions
• Connected party transactions — including loanback — require particularly careful compliance with HMRC's rules