For both trustee boards and governance committees, it is becoming increasingly important to be able to demonstrate a clear focus on DC governance. However, with much less history than for DB governance, best practice is still evolving. In addition, given the different balance of risk between members, trustees and sponsor, the objectives for DC governance are subtly different from those for DB pension schemes.
Often we work with clients that have very little structure to their DC governance at the point we are appointed. bac’s starting point is to help the client to understand their objectives and to tailor a governance solution accordingly.
In the sections that follow, we take a detailed look at four different areas in which our clients have been focusing their DC governance.