Entire governance solutions
Whether a trustee board or a governance committee, focus on DC governance is becoming increasingly important. Sponsors want confidence that their contributions are being invested efficiently, the plan is well managed and corporate risks are being tightly controlled. DC governance is also a key area of focus for the Pensions Regulator, who is rightly pushing for higher standards, value for money for members and transparent information.
Whilst we can provide the specific support you need in any area of DC governance, we also offer a fully joined-up governance solution which covers all aspects of managing your DC arrangements.
A large manufacturing company had been running a DC arrangement for over 15 years. Whilst well designed and set up properly, there was minimal company oversight of this DC scheme. Membership had grown steadily and now represented 75% of the overall workforce. After a few minor issues emerged, the company decided it needed to act.
The scheme was moved into a master trust arrangement, but the company also decided it needed a governance committee to oversee the arrangement from the company’s perspective.
We were brought in to chair the committee and to:
- set the quarterly meeting agendas and provide secretarial services to the committee
- develop and monitor the corporate risk register, communication strategy and business plan
- monitor the performance of the provider and the committee
- provide quarterly training to the committee
- manage actions between meetings and liaise with the provider as required.
To support this process, we set up an online governance dashboard. This is a one-stop shop for committee members to access all the key information on the arrangement and its governance.
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.
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.
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.
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.
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.