Scheme wind-up (DC)
With the introduction of auto-enrolment, it is common to replace DC Schemes with either a Master Trust or a Group Personal Pension Plan (“GPP”).
A number of factors, not least the increased Regulatory burden of running trust-based defined contribution schemes, have led to increases in the on-going costs of such schemes. With the introduction of auto-enrolment, it is increasingly common for sponsoring employers to seek to wind-up those trust-based schemes and to replace them with either a Master trust or a Group Personal Pension Plan (“GPP”).
Once wind-up is achieved there will be no on-going running costs, no need to find trustees and no need to prepare a Chair’s Statement.
The timing of the path to wind-up will vary because of a number of factors including:
- The “ wind up readiness” of the scheme – including the quality of the Scheme data and the clarity of the scheme Rules.
- The approach to securing members’ benefits. Some clients wish to secure all members’ benefits as soon as possible. Others seek to offer transfer values, early retirement options and winding-up lump sums with a view to granting members greater flexibility.
The process of efficiently achieving scheme wind-up requires a further set of trusteeship skills above and beyond running a scheme in an ongoing scenario. The Dalriada team has wound-up over 300 pension schemes.
Our skills and approach are unique:
- We seek to work strategically. To engage the sponsor to understand the most efficient timescale over which a move to securing members’ benefits can be achieved.
- We work collaboratively. A move to secure members’ benefits requires specialist advice – we work with our co-trustees, sponsors and advisers in a collaborative manner. The ultimate objective – the move to secure members’ benefits – is consistent.
- Our team-based approach ensures that we have visibility of the very best market practice in the DC wind up sector. We know what good advice and competitive pricing looks like and we ensure we obtain this for our clients.
- Attend and participate in trustee meetings.
- Work collaboratively with existing trustees and sponsoring employers.
- Provide unique innovative approaches to the challenges schemes face.
- Monitor the scheme's investment strategy and performance.
- Provide strategic direction.
Chair of trustees
- Provide input and prepare agenda for trustee meetings.
- Attend and chair trustee meetings.
- Review and approve the minutes of the meeting.
- Monitor actions arising and feed back on progress.
- Also a strong, experienced and knowledgeable independent trustee.
- Experienced team working behind each sole trustee.
- Single point of contact.
- Work closely with the scheme’s service providers and advisors.
- Reduces need for sponsoring employer monitoring.
- Invite employer and stakeholders to attend formal trustee meetings.
- Maintains high quality professional services.
- Strategic direction and full control.
- Single point of contact.
- Saves scheme time and money.
- Access to our ground breaking technology, Mantle®.
- Live administration and actuarial data.