workplace pension scheme design & provider selection
Why are pension scheme design and provider selection important?
The Pensions Regulator has set out six principles for good design and governance of workplace defined contribution schemes. The first three principles relate to scheme set up:
Scheme set up
- Principle 1: clear roles and responsibilities - Schemes should be designed to be durable, fair and deliver good outcomes for members, including features such as the provision of a suitable default investment option, transparent costs and charges, protected assets and sufficient protection for members against loss of their savings.
- Principle 2: effective decision making - A comprehensive scheme governance framework should be established at set-up, with clear accountabilities and responsibilities agreed and made transparent. This includes identifying key activities which need to be carried out, and ensuring each of the activities has an ‘owner’ who has the necessary resources to carry out the activity.
- Principle 3: appropriate investment options - Those who are accountable for scheme decisions and activity should understand their duties and be fit and proper to carry them out. This principle ensures that those who are given accountability or responsibility for a key governance task are able to carry this out.
The remaining three principles relate to the ongoing monitoring of your workplace pension scheme.
Providing you the expertise you need
In our experience, employers follow a workplace pension lifecycle. Our expert team can help support your business at any stage of this cycle to be in control of your workplace management as your staff enter, remain part of, and exit the business:
- Audit – Benchmark your scheme against your competitors and the market.
- Design – Design or re-design your scheme make-up policies and processes.
- Procure – Find the appropriate scheme or provider.
- Implement – Embed your plan and ensure your benefits are appreciated.
- Governance – regularly assess your plan to monitor value and ensure it runs effectively.
- Review – Review your existing scheme.
Get in touch with a workplace pensions expert