Member modellers

Web-based technology such as a pension modeller can add real value in helping your scheme members understand what their pension benefits will look like in different future scenarios. This can be particularly important when:

  • undertaking a pension change project, with members facing a radical change to their benefits
  • senior employees are working through the implications of the lifetime and annual allowances
  • members with a mixture of DB and DC benefits want to plan for their retirement.

Our approach is different from many consultancies in that we do not offer a “one size fits all” web application. In the initial design phase, we seek to understand precisely what you want the pension modeller to show and help you think through how best to present those results to members. We also review the language and style of your previous employee benefit communications, so that we can give the modeller an appropriate look and feel.

In the development phase, we work closely with you to refine the design until it fully meets your specifications. We can also test the modeller on employee focus groups and, based on their feedback, make final refinements before going live.

At retirement modeller

The trustees of a circa £3bn DB scheme decided they wanted to provide members with additional support as they approached retirement to consider their options, including taking a transfer out of the scheme. The trustees wanted to provide enough information that a member could realise their range of options and why taking financial advice could be a good idea.

We worked with the trustees and scheme administrators to create a bespoke tool that reflected the information members received from the scheme near retirement. Members could log onto the tool and compare their scheme benefits with their options if they took a transfer value. The site then had information on where members could go to investigate these option in more detail.

PIE modeller

We have recently designed and implemented a PIE at retirement option for a FTSE 100 client. The project involved agreeing the following with the trustees

  • the PIE offer design
  • the member communication
  • a bespoke member online modeller we designed comparing a members’ benefits with and without the PIE offer.

We also supported the company to ensure the scheme’s administrators correctly implemented the new offer into the administration systems and procedures.

High earners modeller

A large FTSE 100 offers their employees a range of options if they are likely to impacted by the annual or lifetime allowances, involving pension, tax efficient savings or cash. To support members we developed a modeller to enable to compare their options based on their earnings. The modeller was part of a much larger website explaining the members options and the tax requirements.

25 September 2020

In the news this week, the CMI asks for industry views on how to allow for 2020’s mortality experience, the DWP launches a small pots working group, the autumn Budget is abandoned but the Chancellor announces new measures to help businesses, the Barclays scheme subscribes to a Barclays bond and there is another repeat buy-in.

Endgame planning

Journey plans or glide paths may have been around for a long time but they’re at the heart of the Regulator’s proposed new funding code. In this Pensions Perspective, Leonard Bowman looks at how long-term funding and investment plans are evolving and explains why companies are increasingly taking the lead in designing an endgame strategy for their schemes.

Pensions Arena July 2020

This quarter’s Arena has a summary of our recent Pensions Perspective, “Emerging from lockdown”, which looked at how best to tackle the most common pension issues which companies are currently facing. It also shows all the usual financial and investment analysis for the quarter ending 30 June 2020.

Emerging from lockdown

As we keep hearing, we are living in unprecedented times. However, as we turn our attention to the future, what does the “new normal” mean for defined benefit pension schemes? In this Pensions Perspective, Leonard Bowman considers the most common pension issues that companies are facing and how best to ensure that the company approaches these on the front foot.

Getting buyout ready

Covid-19 has created many challenges for DB schemes but, for those ready to transact in 2020, it may have created even more favourable market conditions for a buyout. The problem is that most schemes are not there yet. In this Briefing we look at what being “deal ready” actually means and what work it will involve.