Published by Nick Griggs on
The research has revealed:
Alongside this research, TPR has developed a charges checklist and web tool which allows trustees and sponsoring employers to compare the cost of their scheme with other typical schemes of similar size. The web tool is extremely easy to use – simply select the size of your scheme and the results are displayed. The tool gives the lowest, highest and average cost per member from the schemes surveyed and provides a breakdown of the average DB running costs for schemes of each size. The tool also shows a graph comparing the running costs of schemes of different sizes.
The research should encourage employers to look more carefully into how much is being spent running DB schemes. The checklist and web tool will enable employers to gauge whether or not they are overspending on running costs.
Other questions this research might lead employers to ask include:
The research has shown a huge variation in what employers are currently paying for their scheme expenses. Of course some trustees will prefer a higher level of active management, and smaller schemes will usually pay more per member than larger schemes, however, the web tool provides a simple way for employers to see how their costs compare with other DB schemes of similar size.