UK - Four out of five trustees believe they should be spending more time on their defined contribution (DC) pension plans, according to Watson Wyatt.
In a survey at a Watson Wyatt seminar attended by over 30 trustees and pension managers, 75% of trustees said they should spend more time on DC plans and one in four admitted to spending not nearly enough time on the issue.
The results also showed that one in three admitted to having not enough understanding of the complexities and the risks involved in DC plans.
Watson Wyatt senior consultant Gary Smith said: "Improved communication to engage members and a stronger focus on administration and investment practices are the key areas where trustees increased attention would be of most value.”
Surprisingly, the survey found only one in five trustees had a service level agreement (SLA) in place with their DC provider and / or administrator.
"The Pensions Regulator expects DC schemes to have robust internal controls and SLAs are an important part of this. Trustees need mechanisms to ensure that accurate, timely and relevant procedures and communications are taking place between all the parties - HR, payroll, administrators, fund managers and members," added Smith.
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