Regularly auditing and reviewing your scheme so that you are confident it remains excellent value for you and your employees.
Defined contribution (DC) pension scheme governance has become extremely important in recent years, not least because of the focus being placed on it by The Pensions Regulator (TPR). How do you ensure your members are achieving a good outcome from your scheme?
We have a structured approach to DC scheme governance that reflects TPR’s best practice guidelines. Our pension scheme clients receive full governance reports on all the key areas highlighted by the Regulator at least once a year at a formal review meeting. We also offer one-off reviews where employers would like a second opinion on their scheme’s governance process and can help clients establish pension scheme governance committees.
The aspects covered in our scheme governance reviews include:
- communication – use of the various tools available such as group presentations, individual meetings, scheme website, helpdesk service
- investment – options, default fund selection, fund performance and underlying fund/portfolio governance
- contributions – overall structure, level of voluntary employee contributions
- fees and charges – competiveness, transparency, appropriateness
- compliance – new legislation, salary sacrifice, auto-enrolment and the new employer duties
- service levels – provider, administrator and adviser
Past performance is not a reliable indicator of future performance.
The value of investments and income from them may go down. You may not get back the original amount invested.
A pension is a long-term investment. The fund value may fluctuate and can go down.
Eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.