In a defined contribution scheme a member’s benefits are determined by the value of the pension fund at retirement. While a defined contribution scheme has less risks and fewer uncertainties for the sponsoring employer it brings a range of different challenges to trustees. Member choices directly impact outcomes and for trustees ensuring that member communications are there are a number of governance and compliance challenges, and the issue of ensuring members make the right choices to achieve positive outcomes.
The advantages of having a professional trustee on your board include
- Having an industry expert who can drive forward value for money and better member outcomes.
- Ensuring that the investment choices, including default funds, are suitable and appropriate for the scheme membership as a whole and are understood.
- Ensuring communications materials are in Plain English to improve member education and maximise member engagement, which in turn will lead to better member outcomes.
- Keeping up to date with changing legislation and regulation and how it impacts your scheme.
- Making sure your governance policies and procedures are up to date.
- Ensuring your scheme complies with the Pension Regulator’s Code of Practice for DC Schemes.
Please get in touch to discuss your needs and how we can help.
