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.”
Railways Pension Trustee Company chief executive Phil Willcock has quit the scheme after only 10 months to take up a position as head of AIG UK Life.
The Financial Conduct Authority (FCA) has launched a consultation on how to enable defined contribution (DC) savers to invest in patient capital via unit-linked funds.
The Pension Protection Fund has published its final levy rules for 2019/20 following a consultation launched in September.
The Competition and Markets Authority's (CMA) final report on the investment consultant market has been celebrated as having "real teeth" to produce better outcomes for members.