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 ACA calls for AE contribution increases plus tax and pension simplification, MaPS launches its 10 year financial wellbeing strategy and the AA consults on stopping future DB accrual.
2019 marked 50 years since Neil Armstrong walked on the moon and this was obviously on the Queen’s mind in her Christmas message as she talked about a bumpy year but one with small steps of progress as well. In terms of pensions, it also felt like a year of small steps and occasional bumps. In this quarter’s Arena, we take a positive look back at 2019, as well as looking forward to some expected pension developments over 2020.
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?