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 Chancellor’s summer statement is pensions-lite, a call for input is launched on data standards for pensions dashboards, a company looks to bring its DB scheme closure forward by four years and another large longevity swap is completed.
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.
Given the very company/scheme-specific impact of the Covid-19 pandemic, in this quarter’s Arena we simply show all the usual financial and investment analysis for what was a very turbulent first three months of 2020, plus a summary of key pension developments and Company pensions news over the quarter.
Over the autumn of 2019, BAC conducted an extensive survey of the actions which companies are taking to manage their defined benefit (DB) and defined contribution (DC) pension arrangements.
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.