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Barnett Waddingham
0333 11 11 222
A solid governance framework ensures that both employers and trustees can demonstrate that members' interests are always at the heart of everything they do.

Whatever the structure of a defined contribution (DC) plan - contract or trust based - this should not affect the result for the members and all members should receive the best outcomes possible.

The legal framework should not be seen as a tick box exercise to purely fulfil the basic governance duties; instead employers and trustees should focus on what really matters when helping employees with their long-term savings.  We describe our approach as 'Comply Plus'.

Setting governance objectives

It is important to understand from the outset the budget that has been set for establishing the governance framework and monitor this on an ongoing basis.  A strategy can then be developed that offers employers and members the best return for their investment.

The key to great governance

Best practice requires foresight; analysing the cohorts of members that exist within the company and the DC scheme to understand likely future issues and concerns.  

We view DC in three parts:

  • growth (building the pot of money)
  • shaping (helping members make decisions as they get closer to retirement)
  • access (using the pot of money)

Growth is often the key focus for governance committees but we argue that shaping and access is where the member outcomes can be impacted most.  GEM is our analytical tool that allows us to look at your workforce and segment it based on factors such as age, affluence, gender, job role and location.  The results help us to shape governance in areas such as investment and engagement strategies.

Helping to deliver good governance

Our role is a trusted, professional adviser that sits within a governance committee.  We bring our knowledge, experience and market expertise to help deliver the committee's objectives:

  • investment framework and monitoring
  • market developments and training
  • engagement and communication
  • value for money and administration

Related knowledge and resources

Blogs

  • PerioDic - April 2019

    Our PerioDiC Spring newsletter summarises the trustee, company and other elements to be aware of which help with running a defined contribution (DC) scheme.

  • PerioDiC - October 2018

    Our Autumn PerioDiC newsletter summarises the trustee, company, and other elements to be aware of which help with running a defined contribution (DC) scheme.

  • Investment Insights: LDI Plus

    The use of LDIs, by which we mean the practice of using leverage to reduce the exposure of a pension scheme's funding position to interest rate and inflation movements, has become increasingly commonplace in pension schemes' investment portfolios.

  • Jan 25 2019
    Evolving DC governance: meeting member needs

    In a world where legislation, products and most importantly of all, member needs are constantly evolving, ongoing governance is vital to ensure DC arrangements remain suitable. We look at how a well-designed governance structure can prepare a scheme for future challenges that might arise.

    Location: http://bit.ly/evolving-DC-governance

  • Dec 19 2018
    DC infrastructure: the Mitchells & Butlers case study

    We examine the pension scheme journey of Mitchells & Butlers, one of the largest operators of restaurants, pubs and bars in the UK. Both company and trustees worked together to deliver a market-leading DC scheme with better outcomes for members at its core.

    Location: http://bit.ly/DCinfrastructure

  • Nov 30 2018
    In your members’ shoes: the corporate overview

    At our DC Conference, we helped delegates understand the experiences, challenges and thought processes of their members to enable them to make better decisions for their scheme – truly putting themselves in their members’ shoes.

    Location: http://bit.ly/inyourmembersshoes

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