The Pensions Regulator has made it extremely clear that employers need to understand their key responsibilities and act accordingly, and one key aspect of this is that you must protect your workers. This means complying with the new employee safeguards and adhering to the new rules around the information you must provide to your workforce.
In essence the role employers must undertake is akin to Trusteeship. Governance means you must review your pension scheme, monitor new developments, identify potential areas of risk and have regular trustee/governance meetings. You will then need to report back to the pension scheme members and undertake any communications deemed necessary by the Governance Committee.
In reality, the on-going auto-enrolment processes and governance are about compliance, and as always with compliance comes risk. In order to help you mitigate this risk, we have created a Governance service that will help you establish internal controls and improve your risk management procedures.
To help you do this, we will:
- Advise you on the make up and regularity of the Governance Committee (At least annually)
- Attend and, if requested, lead your Governance Committee meetings
- Provide legislative updates and suggestions regarding market developments to ensure your scheme remains appropriate and relevant to your workforce
- Thoroughly review the pension and any other benefit schemes provided to ensure they contribute towards the achievement of your business objectives
We will work with your pension provider to produce the data needed to analyse and assess your scheme, and produce a risk review report, which will include:
- A profile of your scheme, including opt out and opt in rates, contribution levels, member change statistics and fund choices
- Insurer and scheme suitability, service standards and pricing
- Default fund reporting, an analysis and review of your default fund including suitability, performance and our recommendation
- Changes in legislation and advice thereon
- Production of the statutory report to members to ensure ongoing member understanding and engagement.
- Production of the Governance Committee meeting minutes
Our service is a fixed fee service, which is based on one annual governance meeting and all of the above-mentioned elements. From instruction we require a minimum of four weeks to prepare for the meeting and will produce a report to members and minutes of the meeting within two weeks of it taking place.
For further information, please contact firstname.lastname@example.org.
Brooks Macdonald Financial Consulting Limited is authorised and regulated by the Financial Conduct Authority. Registered in England No 2621847. Registered Office: 72 Welbeck Street, London W1G 0AY.