DC Consulting
As a decision-maker for a defined contribution scheme, you are responsible for how your members' savings are managed. In return, they – reasonably – hold you to account for what direction you take on their behalf.
The weight of extra regulation and other, increasing obligations means your accountabilities continue to grow, whether or not you sit on either a trust or contract-based scheme.
The industry grows more complex by the year. The expectation on you to ensure you can oversee your DC scheme with the authority and informed insight taken for granted by your members adds further pressure on what is already a demanding role.
But how do you prepare scheme members for the fact that their plan may not deliver?
Although 891 per cent of members trust their employer to provide an adequate pension, the reality is that very few will be able to afford to retire, based on current forecasts.
Further complications are also growing with the demise of the compulsory retirement age. Scheme sponsors face a looming test in trying to remove from the payroll those employees who cannot afford to retire and want to stay on until they can do so, placing a greater burden on the ability of the company to finance the scheme.
As your duties increase, are you able to define your contribution to ensure your strategy achieves its corporate objectives and meet the needs of its members?
P-Solve has significant experience in helping trustees to develop and deliver effective solutions. At the heart of our thinking is achieving real improvement in performance.
With more than 150 clients we currently advise £21bn of assets and manage £6bn of assets for clients on a fiduciary management – or delegated – basis. The performance we deliver extends beyond just investment growth – it is also about performance efficiency, risk management and robust governance.
1 Punter Southall survey 2010
Assets under management are based on a mix of market values and notional values of derivatives.