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'.
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.
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 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.
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:
In recent years, regulators have put so much emphasis on the minutiae of defined contribution pensions that we seem to have forgotten about the bigger picture.
Communications will end up unread in the bin unless they remember what they’re for and provide relevant information targeted to the intended audience, explains Damian Stancombe.
With conversation particularly around retirement, we explore the FCA’s retirement outcomes review and the possible risks and solutions.
Our PerioDiC Spring newsletter summarises the trustee, company and other elements to be aware of which help with running a defined contribution (DC) scheme.
Our Autumn PerioDiC newsletter summarises the trustee, company, and other elements to be aware of which help with running a defined contribution (DC) scheme.
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.
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.
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.
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.
Our Beyond Pensions report reveals that UK employers care about the financial needs of their employees and want to help alleviate their financial stress, but are not hitting the spot.
50% of employers are concerned that DC is not being used for its primary purpose
Our ‘Generation WHY? study, now in its third year, highlights important generational attitudes and perspectives towards money matters as well as savings and how personal affluence affects outlook.
For the second consecutive year, we are delighted to have been named ‘DC Adviser of the Year’ at Pensions Insight's DC Awards.
Barnett Waddingham is delighted to have been recognised as the UK’s DC adviser of the year, and the leading DC technology provider of the year at the Pensions Insight DC Awards 2016.
Barnett Waddingham has appointed Steven Johnston as a senior client account manager within its Workplace Health and Wealth practice in Glasgow, as the firm looks to further expand its team in Scotland.