| History
Initially
known as PosTel, the Hermes group was formed in 1983
from the investment management team of the Post Office
Staff Superannuation Fund, when the fund split to become
the Post Office and British Telecommunication Staff
Superannuation Schemes. In 1995 the Trustees of the
BT Pension Scheme bought the 50% holding in PosTel owned
by the Post Office scheme, and PosTel’s name was
changed to Hermes. The name Hermes (the Greek messenger
of the gods) was chosen to reflect the group’s
ownership by the BT Pension Scheme and its management
of pension funds for two of the UK’s largest communications
companies.
In 1997, the Trustees of the scheme agreed that Hermes
should begin to offer its services to third parties
in both the private and public sector, as long as it:
- improves
the overall performance of BTPS;
- brings
enhanced scale and reduces costs;
- enhances
recruitment, retention and motivation of staff; and
increases the value of Hermes.
However,
Hermes only markets products to 3rd party
investors if:
- we
have a robust track record;
- there
is sufficient demand;
- we
are able to access and service the demand; and
- there
is a perceived benefit to being a co-investor with
BTPS.
During
2004, the BTPS Trustees and consultants considered how
to improve the governance of Hermes and BTPS. This reflected
the commitment of the Trustees to maintain the highest
standards of pension scheme governance and to be at
the forefront in the development of good practice in
pension scheme administration and the safeguarding of
scheme assets. As a result of the governance review
the following was agreed and took effect from 1 January
2005:
-
The role of Chairman of Hermes and of the BTPS Trustees
was split.
- The
Hermes Board comprises the independent non-executive
Chairman, two non-executives (who will also be BTPS
Trustees), one independent non-executive (additional
to the Chairman) and five Hermes executives. The appointment
of key roles onto the Hermes Board requires formal
consultation with the BTPS Trustees and, where appropriate,
with BT. The Board of Hermes meets every alternate
calendar month, with additional ad hoc meetings held
when necessary. The Board has clearly defined authority
limits to ensure that there is clarity about which
matters are within the scope of its authority, and
which will require the ultimate approval or referral
to the BTPS Trustees. Minutes of Hermes Board meetings
will be seen by the BTPS Trustees. The Hermes strategy
and detailed business plan will require the ultimate
approval of the BTPS Trustees.
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