It's time to rethink exactly what good pension governance is because it's critical to the operation of an effective workplace pension scheme.
For today’s workplace pensions, a sound governance structure can mitigate risks, avoid costly litigation and enhance efficiencies. And perhaps most importantly, it can also help ensure good outcomes for you and your employees by bringing clarity and simplicity to a topic many find complicated.
"It is important that members have confidence that they are saving into safe and durable products capable of delivering good outcomes" The Pensions Regulator
1. The governance committee: Make sure you have the right people involved so that your pension scheme can be well governed and members' interests are protected
2. Scheme management skills: Make sure your commmittee has the skills and knowledge to work effectively together, and with your pension scheme advisers, so that good decisions are made and members' interests are protected
3. Administration: Make sure your committee works well with your scheme administrator, and that you have the right people and processes in place to ensure members' benefits are administered to a high standard
4. Investment governance: Make sure you have the right governance arrangements, involving the right advisers, and that the investment strategies you put in place provide the best chance for your members to get the right outcome
5. Value for members: Make sure you meet your obligation to assess value for members and you understand what elements contribute to the value your members get from your pension scheme
6. Communicating and reporting: Make sure you understand your pension scheme members' views and needs, and you communicate with them at the right time and in the right way to help them make good decisions
Did you know...
By 2018, 9 million people will be saving
into auto-enrolment workplace pension schemes
source: PS Aspire Survey 2015
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A workplace pension scheme is a key part of your reward strategy, helping to motivate and energise your people.
Good governance helps you create a benefit that members engage with and value.
It enhances your wider reputation as an employer, helping you to attract the best new talent and retain existing talent.
It supports good member outcomes, giving your employees a route to retirement.
A robust governance structure helps you understand and adhere to current regulations and best practice.
It can enable your people to understand how much you value them. And how you’re investing in their future.
At its most basic, good governance helps members build savings. But, good governance offers much more too.
It can take employees on a journey, engaging and inspiring them to think about their financial future.
By giving them clear, practical information, they’re able to make the right decisions at the right times.
