UK - Trustees need to pay more attention to defined contribution pension arrangements, Stephen Yeo, partner of Watson Wyatt, told the National Association of Pension Funds (NAPF) in Manchester today.
“All too often, where DC and DB arrangements are supervised by the same set of trustees, the large majority of their time is spent on the DB arrangements, with the consequence that too little time is spent on the DC section,” he said.
“It is understandable that DB schemes are taking more time to run. They have encountered significant funding difficulties in recent years and represent a major area of risk for scheme sponsors. In addition, most of the recent legislation affects DB rather than DC schemes.
“But trustees must not neglect their responsibilities to DC members. Although funding is less of a concern, administration and communication are of much greater importance,” he said.
Watson Wyatt has developed a DC governance service for trustees that includes a new approach to operating the scheme.
The service helps with: strategic review and monitoring through the provision of scheme membership analysis, operational management, scheme delivery, and member interaction and engagement.
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