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:
ESG is a hot topic at present for those who manage DC pension schemes. Regulatory requirements from the DWP and TPR means trustees now have to consider how ESG affects the investment strategy for their members. What are the implications of this change?
The level of regulation, legislation and governance burden on DC schemes is increasing. Therefore, so is the level of associated operational cost and risk – leading to a number of schemes closing and members’ assets being moved elsewhere.
The ‘Freedom and Choice’ reforms shook up the market a few years ago and said that people were free to use their pension pot as they wish. However, more freedom equals more choice and that makes choosing what to do at retirement more complex.
New regulations and accompanying statutory guidance compel trustees to produce detailed analyses of the costs and charges incurred by scheme members on their money purchase benefits.
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.
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.
Barnett Waddingham named ‘highly commended’ in the ‘DC Consultancy of the Year’ category at the UKPA awards in what was a very competitive field.
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.