A smooth and simple transfer for the scheme and its members.
Key Elements for Successful Transition
There are two key elements to a successful transition. These are:
- Transitioning the governance structure from the current arrangements to a Professional Corporate Sole Trustee (PCST or referred to as “sole trustee”) framework with Dalriada Trustees Limited as the corporate trustee.
- Transitioning the administration arrangements from the current administrator to Dalriada Trustees Limited.
We have extensive experience of running the above two transition projects. The switch to PCST will take between two to six weeks, and the switch in administration services will take about six months. More details on this process below.
Transition to Sole Trustee
Our transition plans are robust and well tested.
We on-board a scheme within the time frames stipulated by our clients. This can be as short as one to two weeks or a longer phased approach of up to six weeks. The transition to sole trustee happens simultaneously with Dalriada taking on scheme secretarial responsibilities.
A key element of the transition plan is the transfer of knowledge for all stakeholders:
- Collaborating with the current trustee board
- Building relationships with the sponsor
- Gaining insights from advisers
- Effectively communicating changes to the scheme members
Getting this right results in a smooth transition.
In some cases, to help with a smooth transition, we set up a “pensions committee” to sit alongside us in our role as sole trustee. The pensions committee consists of some of the former trustees and company representatives . They share their knowledge and experience of the Scheme and provide oversight of the work we are doing.
The pensions committee attends our trustee board meetings to share thoughts, but the committee don't make decisions. Terms of reference outline their role. Usually, they support us for 12 to 24 months, offering valuable insights, especially regarding past practices and member communications.
The transition from the incumbent administrator is a critical component in the ongoing success of the Scheme. Our dedicated installation manager who will liaise with appropriate staff at the company and the incumbent third-party administration provider.
The key steps we follow are:
- Obtain a signed-off benefit specification document. This document translates the information in the Trust Deed and Rules of the Scheme into a format that we can use to program the administration platform, Mantle, to replicate the provisions of the Scheme.
- Request and obtain the Scheme data from the incumbent administrator. This is typically provided in an electronic data file with an associated description of each data item held on the records. We check the data provided is both complete (i.e. the data fields include data entries) and accurate (i.e. the data in each of the fields are consistent with each other – for example age of member and date of birth are consistent).
- Once Mantle has been programmed in accordance with the benefit specification and we have the data, we replicate the benefits members receive and these are checked against the current benefits payable. This is to confirm that our programming has been completed successfully.
- We complete balance sheet calculations as at the last valuation date to ensure that our calculated liabilities match those calculated by the Scheme Actuary. This allows us to set up our balance sheet tracking functionality to show the daily funding position to the current date.
- We parallel run the payroll to ensure the payments set up on our administration system are the same as those currently in payment for members.
After successfully completing and approving the above steps, we launch the administration for members, releasing the previous administrator.
Executing the transition in this manner guarantees a seamless process, ensuring both technical and operational perspectives are streamlined. Members will not face inconvenience or notice any changes. We can then administer the Scheme accurately and efficiently from go live date onwards and members will receive a high-quality administration experience.
Looking for more information?
Discover a seamless transition with Dalriada.Together. From governance restructuring to administration changes, our experienced team ensures success.
Make your transition smooth and efficient - contact us today.