Sometimes DC trustees or governance committees feel that they have objectives but they are implicit rather than explicit. bac’s role as DC governance adviser is to help the trustees articulate the high-level direction of travel, so that they are clear on what they want to achieve.
We have helped a number of clients to develop their business plan from scratch, or to revamp an existing but out-of-date plan. Our approach is to keep it simple, focus on the issues that really matter and define actions that are realistic to deliver.
We start with a thorough review of the risk register and confirmation of the key objectives for the client (trustee or governance committee). The client will then be a in a good place to develop their business plan. This should be kept at a fairly high level and used to identify actions for the short term (within one year), medium term (1 to 5 years) and long term (beyond 5 years).
In the news this week, the consultation on the RPI is delayed until March, the first DB funding code consultation is also expected in March, there is speculation about the Treasury’s intentions towards the tapered annual allowance, HMRC announces a further delay to the final GMP data cuts and Dominic Chappell is ordered to pay £9.5 million.
In the news since 20 December 2019, the Pension Schemes Bill returns, the FCA takes action against bad DB transfer advice, the Chancellor confirms the Budget date and two pension schemes win a US class action.
Despite the very different circumstances facing individual companies, bac‘s autumn 2019 survey reveals a surprisingly consistent picture of the actions which companies are finding most attractive to manage their DB and DC pension arrangements.
As DB liabilities have become legacy issues to be managed, governance has become the umbrella term for a broad range of risk management tools. In this publication, we look at the DB governance solutions we have helped our clients to implement.
As pension trustees and sponsors get serious about good governance, a key question is whether technology can play a meaningful role or is simply an expensive addition that looks good but adds little value?