In defined contribution schemes a member’s benefits are determined by the value of the pension fund at retirement. While a defined contribution scheme has less risks and fewer uncertainties for the sponsoring employer it brings a range of different challenges to trustees. Member choices directly impact outcomes and for trustees ensuring that member communications are there are a number of governance and compliance challenges, and the issue of ensuring members make the right choices to achieve positive outcomes.
The advantages of having a professional trustee on your board include
- Having an industry expert who can drive forward value for money and better member outcomes.
- Ensuring that the investment choices, including default funds, are suitable and appropriate for the scheme membership as a whole and are understood.
- Ensuring communications materials are in Plain English to improve member education and maximise member engagement, which in turn will lead to better member outcomes.
- Keeping up to date with changing legislation and regulation and how it impacts your scheme.
- Making sure your governance policies and procedures are up to date.
- Ensuring your scheme complies with the Pension Regulator’s Code of Practice for DC Schemes.
If you’re interested in our defined contribution schemes services, please get in touch using the contact form or speak directly to one of our team who will be able to help.
