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.
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.
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.
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.
In the news this week, the second Lloyds judgement says that historic transfer payments need to reflect GMP equalisation, the Pension Schemes Bill moves back to the Lords, TPR gets tough on AE compliance, the FCA surveys DB transfer advisers again and another buy-in is completed.
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