UK - Communication is higher on pension funds' agenda than returns, according to studies by Higham Dunnet Shaw (HDS) which highlighted the need to improve trustee knowledge and understanding.
Fidelity has also launched a new communication product as a result of its own research showing as few as 42% of employees voluntarily join occupational pension schemes.
HDS head of governance practice Moira McKelvie commented: “Nearly a quarter of the respondents to our survey said that improving communication with members was their number one issue, demonstrating that the pensions industry is embracing the need for improved member communication as part of a broader governance strategy.”
Fidelity identified communication as a vital tool in the DC pensions mix which can be cost-effective when conducted effectively.
Executive Director of DC Business at Fidelity International, Colin Williams, commented: “There is a paradox in that companies say they offer pensions chiefly to recruit and retain staff but just 29% automatically enrol employees and those with voluntary arrangements see less than half their workforces signing up.”
McKelvie continued: “In today’s world, good governance means ensuring that communication with scheme members is appropriate and of a high quality, developing a programme to enhance the knowledge and effectiveness of trustees, as well as managing the performance of advisers and suppliers.”
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