Pension Consolidation: Traditional Models vs. Dalriada.Together

A new approach to pension scheme management

In an increasingly complex pensions landscape, many organisations find themselves weighed down by the administrative burden of managing their pension schemes. Traditional pension models, while effective in the past, can now appear fragmented and inefficient, requiring significant time and resources from both trustees and sponsoring companies. Dalriada.Together offers a fresh approach to pension consolidation, providing a streamlined, efficient, and cost-effective solution. But how exactly does Dalriada.Together compare to traditional models?

1. Structure and governance: Streamlined vs. fragmented

Traditionally pension schemes typically operate with a trustee board that appoints various suppliers and advisers for governance, administration, actuarial, and investment tasks. This model often leads to inefficiencies as each adviser operates independently even if they are from the same firm, requiring extensive oversight and coordination. Additionally, trustees and companies must manage a complex array of legal, regulatory, and administrative responsibilities, which can be time-consuming and costly.

Pension consolidation becomes crucial in simplifying this complexity. Dalriada.Together, simplifies this structure by consolidating trusteeship, administration, governance, actuarial, and investment management into a single, integrated service. Acting as a Professional Corporate Sole Trustee (PCST), Dalriada assumes full responsibility for legal and regulatory compliance. This frees up time for the company trustees to focus on broader corporate goals and the member trustees no longer have the heavy burden of  training and compliance. Dalriada.Together offers a consistent and efficient governance approach across all schemes, ensuring compliance and reducing the administrative burden on companies.

2. Control over investments: Retained flexibility

A key concern for companies is retaining control over their pension scheme’s investment strategy. Under traditional models, sponsors maintain this control but must coordinate with multiple advisers, which can complicate decision-making and increase costs.

Dalriada.Together maintains the sponsor’s legal participation in key strategic decisions, such as investment strategy and contribution payments. This allows companies to retain influence over their scheme’s financial direction while benefiting from the operational efficiencies of Dalriada’s integrated approach. Additionally, Dalriada’s ability to consolidate assets across schemes provides access to lower asset management fees, making fiduciary management a cost-effective option, even for smaller pension schemes. This asset consolidation is another aspect where pension consolidation leads to significant benefits.

3.Cost efficiency: Predictability and savings

One of the primary challenges with traditional pension models is managing the unpredictable costs associated with hiring multiple third-party advisers and consultants. Each service, whether it be actuarial, legal, or administrative, is typically billed separately , creating a lack of transparency and making financial planning difficult.

Dalriada.Together addresses this issue with an agreed annual fixed fee that covers all services. This fee structure not only provides cost predictability but also ensures that the scope of work for third parties is tightly managed. Additionally, by consolidating services across its portfolio of schemes, Dalriada generates economies of scale, allowing all participating schemes to benefit from reduced asset management fees and overall operational efficiencies. Pension consolidation, in this context, results in both financial savings and simplified oversight.

4. Time savings: Focus on what matters

Managing a traditional pension scheme demands significant time from company representatives, who are often required to oversee daily operations, liaise with multiple advisers, and ensure regulatory compliance. This diverts valuable internal resources away from core business objectives.

Dalriada.Together significantly reduces the time companies need to spend on their pension schemes. By handling all day-to-day operations, Dalriada’s team frees company representatives to have time to focus on the Scheme’s long-term strategy and investment decisions, This shift allows businesses to reallocate their internal resources toward their primary business activities.

5. Technology and automation: A modern approach

Many traditional pension models rely on outdated or fragmented technology systems, which can slow down processes and increase the risk of human error. Manual interventions are often required, adding inefficiencies to administration and member services.

Dalriada.Together is powered by Mantle, an advanced pension management platform that integrates actuarial, investment, and administration data into a single system. This allows all stakeholders, including the sponsor and advisers, to work from the same data set, reducing the time spent reconciling information. Mantle also automates core processes like benefit calculations and document production, enhancing accuracy and efficiency. This technology not only streamlines administration but also allows Dalriada to focus on providing a personalised, compassionate service to members.

6. Member services: A human touch

In traditional pension models, member services are typically outsourced to third-party administrators, which can result in variable service quality and a lack of direct control over member interactions.

Dalriada.Together changes this by taking full responsibility for member services through its integrated platform. This allows Dalriada’s team to handle member inquiries directly, ensuring that responses are timely and accurate. Automation reduces the need for manual interventions, freeing administrators to focus on providing personalised support during key life events, enhancing the overall member experience.

Interested in learning more about our Together service?

Dalriada.Together represents a significant evolution from traditional pension models by offering a streamlined, cost-efficient, and technology-driven solution for pension scheme management. It retains the sponsor’s involvement in key strategic decisions, while consolidating trusteeship, governance, and administration, resulting in time and cost savings. Dalriada’s integration of advanced software and personalised member services provides a modern approach to pension scheme management, making it an attractive alternative to the traditional model.

Learn more about Dalriada.Together today.