Scheme Design & Review

 

You need to design a DC (Defined Contributions) scheme appropriately for it to deliver on your objectives and provide valued member benefits.

 

It's critical that you set clear, measurable objectives when designing your DC scheme. This will help to track the scheme’s performance and get the most from your pension spend.

 

We can help you to design a scheme that’s tax efficient and delivers value to your employees.

 

Cost Planning

We can help you to understand and control the present and likely future costs of your pension scheme.  This will help you to budget accordingly and take action to reduce unnecessary costs and manage risks.  We consider many factors when modelling costs, including:

  • Auto-enrolment

  • Member turnover

  • Unexpected events

Contribution Design

Your contributions to a pension scheme are likely to represent a significant cost, so it’s vital that you get the most for your money.   Our ‘ModelSolutions’ tool allows you to model all your scheme’s key factors – including different contribution strategies to find out how they might impact on retirement outcomes for different member groups and costs.  Some of the issues to consider when deciding on your scheme’s contribution design include:

  • Balancing total pension costs against benefit levels

  • Regulation & legislation

  • Independent quality mark

60% of employees would view their employer in a better light if their pension scheme had an independent quality mark (source: NAPF National Association of Pension Funds).  We can help you reach the standards required to get such an award.

 

Extra Benefits

It’s critical that you design a pension scheme that has benefits which your employees value.  This will help you to recruit, retain and motivate employees within a competitive marketplace.  Some of the extra benefits your scheme design could offer include:

  • National Insurance savings

  • Lump sum and/or dependants’ benefits on death-in-service

  • Income protection (instead of ill-health early retirement)

DC pension schemes typically offer a wider range of benefits than are ‘built in’ to DB schemes.  This makes it all the more important that your scheme is carefully structured to deliver benefits that your employees truly value.

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Contact

Ken Anderson

Ken Anderson