Pensions Management

What is outsourced Pensions Management?

It is no secret within the pensions industry when it comes to recruiting pensions management specialists; it’s hard. The recruitment landscape has changed drastically over the last couple of years. With increased pressure on employers to offer ‘flexible’ working, as well as provide a clear roadmap on career progression, many larger employers struggle with in-house pensions management responsibilities. 

Outsourced pensions management supports in-house pension teams with additional resource to deliver their services to the fullest potential. The involvement of an outsourced pensions management team can be flexible and can be used as much or as little as is needed.  We see ourselves as an extension of the in-house team and are here to be utilised as and when the workload requires.

An in-house pensions manager maintains the highest standards of pension scheme governance while working towards the strategic goals of the pension scheme and our experts aim to give the in-house team the tools they need to help deliver this goal.  

The most crucial task of an in-house team is to facilitate the trustee board in making strategic and appropriate decisions for the pension scheme. However, recent trends reveal that companies are beginning to seek outsourced support to help run their pension scheme.

Why is this trend building?

Increasing legislative and regulatory burden has resulted in a continued increase in workload for in-house pensions managers.  As well as the day-to-day running of the pension scheme, projects such as pensions dashboards, the General Code and Guaranteed Minimum Pension equalisation (GMPe), the pensions manager role continues to grow exponentially. 

Pension managers often carry a key person risk to the scheme and under the General Code trustees will need a policy in place which details how that risk will be mitigated. We are also increasingly seeing the role being combined with a wider HR or employee benefits role. Additional responsibilities lead to competing demands on time which impact the ability to deliver the role effectively.

A solution may be found in recruitment. However, it can be difficult for pension managers to gain approval for additional headcount, especially if the resource needed is for project management which may not be needed in the long term.  The pensions recruitment market is also very competitive, and vacancies can remain unfilled while the demands of the pension scheme continue to increase.  The recruitment and onboarding process can be a demanding time and staff turnover rates can be a concern.

An extension of your in-house team

An in-house pension manager's remit will vary depending on the size and complexity of the scheme, supporting almost every aspect of the pension scheme to ensure its smooth operation. It is not possible for one person to be an expert in all areas of pensions. By appointing an outsourced support for the in-house team, you will not only be mitigating any key person risk and providing the trustee with the contingency plan needed, but also giving the scheme access to a wide range of skill sets and bringing diversity of thought. You should expect a skilled outsourced pensions team to be professionals with vast experience, capable of adapting to various scheme sizes and situations. Your chosen team should have the resources and skill sets to allow you or your in-house pension managers to flourish in their roles.

An outsourced pensions manager can handle all pensions management duties, functioning as an extension of the in-house team with readily available colleagues, resources, and knowledge. An outsourced pension team can assist in responding, negotiating, and documenting changes, projects, and regulatory impacts for your scheme.

Your in-house pensions team are able to pick from the extensive menu of services offered by outsourced pensions management. Stepping in to increase physical resources, with the right skillset, maintain consistency of resource at times of sickness, absence, or recruitment.

• Fulfilling day to day secretarial tasks enables in-house teams to focus their expertise on broader scheme matters and projects, better aiding trustees and adding value to the scheme.

• Our outsourced pensions management team work with all advisers in the pensions market. We utilise this market knowledge to the benefit of our clients, we know what good looks like and what it should cost.

• While most scheme projects occur once, our outsourced pensions management teams iterate through similar project plans multiple times, enhancing their expertise. Each time refining expectations, the process, best practices, and timescales.
  
  

How can we help?

Our experienced team can support in the following areas:

Scheme Secretarial and Governance

Governance is an ongoing, and growing, responsibility. Scheme secretarial duties play a vital role in ensuring effective governance of pension schemes. Good governance safeguards the interests of scheme members, reduces risks, ensures compliance, and maintains the long-term financial sustainability of the scheme.

The introduction of the General Code of practice will see further scrutiny and the task of creating a robust governance framework placed firmly at the door of the pensions scheme secretary. Although the code has yet to be published our team helped shape the legislation that has led to the code which means we already have a full suite of compliant documentation to support clients.

Our support can be as flexible as you need. For some clients we just attend their meetings to take minutes, on others we act as fully outsourced scheme secretaries.

Recruitment, Interim Cover and Continuity

We know waiting for the right person is tough, especially when the action list continues to get longer. With a competitive pensions recruitment market, in-house resources are under strain. Outsourcing gives your scheme continuity at times of uncertainty or change on a flexible and agile basis that suits your needs.

Project Management

Buy-in and Buy-outs, data cleansing, General Code, and GMPe are some of the projects increasing the burden on time and resources. Our professional pensions management team increases your capacity and they apply their extensive project management experience and tested processes to complete these tasks efficiently and cost effectively.

The benefits: why it matters?

The Dalriada Pensions Management service can provide in-house pensions managers with the resources they need to fulfil their role effectively. Whether you require guidance on understanding or applying the new General Code into your Effective System of Governance. Or need someone to step in to take minutes at trustee meetings, we can help.

Led by Leanne Coomber our team will be able to support in tasks that allow you space and time to concentrate on other business and pension matters. Fully flexible, our Pensions Management team will equip you with the tools, resources, and information to apply the best secretarial, governance and member service practices to your scheme. 

Benefits of outsourcing pensions management tasks:

1. Breadth and depth of experience - Our team are at the forefront of delivering pensions management. Their knowledge and experience are at your full disposal to handle all aspects of your pension scheme, from compliance, to investment management, and member communications. Many of our team have been in-house pension managers themselves and therefore understand the nuances of managing the different stakeholders.

2. Time and resources - There are times when the pressure intensifies such as benefit amendments and risk reduction exercises. Often the in-house pensions manager wears several hats. They may be HR or Employee benefits professionals who have absorbed the pensions manager role. Outsourcing pensions management services enables the in-house team to control the allocation of time and resources for scheme operations. This will allow internal staff to allocate their expertise more effectively.

3. Cost savings - Outsourcing can be a cost-effective solution when deployed strategically. Dalriada Pensions Management can be utilised as and when required. Access to our tried and tested procedures, policies and technology creates efficiencies and removes the need for material investment. 

4. Reduced risk - Identifying and managing your key person risk is a requirement of an Effective System of Governance. The need for continuity in the running of the scheme and the wider business is also important and is provided by outsourced pensions management support. 

Dalriada Pensions Management service provides a comprehensive solution. Contact one of our team below to discuss your Pensions Management needs.