DC Governance
Over the last twenty years, contract based pension schemes (such as group personal pension plans) have become the dominant form of occupational pension provision, particularly for small and medium sized business. With the advent of NEST in 2012 they are likely to become even more common.
The Pensions Regulator, amongst others, is concerned that the members of contract based pension schemes get a 'good outcome' and recently identified six issues that it believes need to be addressed in order to ensure an adequate income in retirement, namely :
- Appropriate contribution decisions
- Appropriate investment decisions
- Efficient and effective administration
- Protection of assets
- Value for money
- Appropriate decumulation decisions
Many contract based pension schemes operate without any form of governance mechanism and so are unlikely to be able to comply with the standards expected by the regulator in these key areas. This is one of the biggest long term risks effecting pension saving.
Our Contract Based Governance Service is designed to provide a framework of robust, proactive default options for members who don't want to make their own decision and an environment where informed decisions can be made by the rest. It is designed to ensure compliance with the regulators requirements and raise understanding of the scheme amongst staff.
Our aim is to reduce and remove the risks to the member and the employer whilst providing robust, proactive defaults and an environment where members can make informed decisions.
How it works
PTL is appointed by the company as an independent governor. We work with your advisers together with you to ensure that :
- The range of funds, including suitable default funds are appropriate and reviewed on a regular basis
- The scheme administration is of a consistently high standard
- The fund charges are acceptable and represent good value for money
- Employee engagement and understanding is increased and supported by concise and clear communication
We are independent and do not provide any other service in relation to the scheme. We can operate on either a time cost or fixed fee basis.
For more information on this service please contact us