workplace pension governance
What is governance of workplace savings?
It is the process to regularly assess your workplace pension plan to help you monitor value and ensure it runs effectively. Governance can help you steer your pension scheme to achieve the right results for you and your employees.
Why do you need pensions governance?
Firstly, because you have an obligation to ensure that the pension scheme you put in place remains fit for purpose to deliver the best outcomes for the members – your employees. After all, paying pension contributions on behalf of employees is likely to be one of your biggest outgoings. So it is prudent for you to closely monitor that level of spend to ensure that it is achieving what you want and is giving value for money.
But also because good governance is good for business. If your company gets it governance right then this creates a strong framework through which you can more easily manage the pension scheme and any wider employee benefits. Other benefits of governance include:
- It can help you attract, retain and motive the best quality staff; allowing your business to remain competitive and grow.
- Ensuring your employees are adequately prepared for their future helps you to mitigate the risk on an ageing workforce as well as the risks associated with poor wellbeing.
- Governance aids effective decision-making, provides clear accountability and also helps you manage and mitigate any associated risks, such as regulatory and reputational risks.
- Governance and the supporting management information enable you to highlight and quickly remedy areas where your pension scheme and supporting employee benefits are not achieving the desired outcomes. This gives you an opportunity to engage with your employees and make the necessary adjustments, which can ultimately improve morale, retain quality people and increase productivity.
Get in touch with a workplace pensions management expert