Why Pension Schemes Embrace Outsourced Governance Support

Outsourcing scheme secretarial work

Who among us has not breathed a sigh of relief to deliver a meeting pack just on time, then shortly thereafter, winching at the prospect of writing up a minute for approval? 

With governance standards rising and a pension landscape that’s no stranger to litigation or regulatory intervention, fixing mistakes arising from inadequate governance — such as an incorrectly or ambiguously recorded scheme benefit can leave room for potential reputational damage. This is expensive and more time consuming than it would have been to have produced an accurate minute at the first opportunity. 

It’s no surprise then, that so many organisations and pension schemes are now outsourcing the risk and responsibility associated with scheme secretarial work and effective governance to specialists.

The case for outsourcing scheme secretarial support

Outsourcing the governance and secretarial tasks for pension schemes not only alleviates administrative pressure but also offers additional advantages that enhance the overall governance framework:

• Strategic Focus: Companies can focus resources on delivering their core business goals and services secure in the knowledge that their pension team is well supported, and the pension schemes and other boards are operating under an effective system of governance.
• Strengthening the in-house pension team:  The in-house pension team will be supported by a professional ‘back office’ including specialist scheme secretaries, independent professional trustees, pension lawyers, actuaries and pensions managers.
• Resilience – Outsourced support mitigates key person risk associated with absence, major projects or large influx of work into the pension team.  All of these scenarios can be effectively managed if there are trained professionals with knowledge of your scheme and mode of operation ready and available to step in.
• Risk Mitigation: Accurate and timely minutes provide a safeguard ensuring that boards are compliant and operating in line with regulatory guidance, adhering to best practice and protecting schemes (and sponsoring employers) from future disputes or regulatory issues. 
• Remaining Current: Theexpertise within the outsourced team ensures that key issues make it onto the agenda, reflecting the latest regulatory developments and strategic needs within the scheme’s processes and business plans as appropriate.
• Enhancing Trustee Effectiveness: Ensuring that trustee boards and in-house team members remain effective through effectiveness assessments and supported through structured Trustee Knowledge and Understanding(TKU) requirements.

It is important to remember that this doesn’t have to be fully outsourced but tailored support allowing the in-house team to focus on their higher value tasks knowing their scheme secretarial tasks are being professionally managed in line with their agreed parameters. 

Tailored solutions that grow with your needs

The scope of outsourced services can adapt as a scheme’s needs evolve.  For instance, a scheme may initially require minute taking only for board or committee meetings but later extend support to include meeting packs and other services.  Likewise, schemes may turn to an outsourced team for assistance with running a large scale or complex member communication project, a scheme restructuring, a historic benefit correction or litigation remediation exercise.

As a former in-house pensions manager who outsourced scheme secretarial services, I know first-hand the reassurance that came from knowing that meetings would be professionally organised, minutes would be an accurate record and actions completed in a timely manner.  The resource depth and expertise available through an outsourced secretarial team is often beyond what can be realistically maintained in-house.

Moreover, outsourcing secretarial support provides continuity when long-standing pension team members retire or leave the business and allows new recruits time to settle into the business.

So why choose Dalriada?

Dalriada combines decades of pension governance expertise with a dedicated team of specialists who understand the complexities of scheme management. For more information on our Pensions Management service, visit our service page