Increased regulatory focus, automatic enrolment and the continued closure of defined benefit schemes have all contributed to the increased popularity of contract-based pension schemes. Whilst not currently a legal requirement, good governance of your contract-based pension scheme, whether it be a Group Personal Pension Plan or a Group Stakeholder Plan, will deliver considerable benefits for you as an employer and your employees.
In simple terms, the good governance of a defined contribution pension scheme is dependent upon a number of areas:
- Robust governance processes and procedures
The ability to identify and address potential issues before they occur; thereby managing reputational risk, ensuring good employee relations and saving you time and money.
- Provision of appropriate investment options
Ensuring that the investment options available to your employees are appropriate for their needs; not only at the point of implementation but also on an ongoing basis.
- Competitive charging
Charges play a big part in the quality of outcomes for employees at retirement. It is therefore vitally important that the charges that employees pay are competitive and do not unduly affect pension savings growth. Competitive fees also enhance employees’ perceived value of your pension offering.
- Engaging member communications
Whilst everyone agrees that making adequate financial provision for our retirement is extremely important, most employees do not find pensions particularly interesting. Clear, concise and targeted communications will engage your workforce, improve their contribution rates and increase the value that they place upon the pension benefits you provide as an employer.
At Quantum we believe that good governance and achievement of good member outcomes need not cost the earth. Our experienced consultants are passionate about pensions and will take the time to understand your specific circumstances and use this to deliver high quality, relevant and cost effective advice that will benefit you and your members.