In part two of the pension strategy blog series, Alex Whitley discusses how to set and articulate your company pension strategy.
All employers are of course different, but in my opinion the four key points set out below will help you set the parameters to work within for your pensions strategy, and for positioning your communications with the scheme trustees.
1. Decide which individuals should be responsible for putting forward the proposed strategy
- Those involved should be of sufficient seniority to understand what is or isn’t likely to be acceptable to the board, and may include some or all of representatives from finance, reporting, legal and HR
- They need to have the necessary experience and education of exactly how significant pensions are within the wider business, and understand the degree of risk that pensions can expose you to. The more material pensions are (or might be), the more resourcing you might need going forwards in order to manage things
2. Understand some of the less quantifiable factors you are working within
Identify which factors might influence pension decisions so they can be allowed for within your strategy. These might include:
3. Position yourself in different areas of pensions
Agreeing where within the extremes you wish to position yourself when it comes to different areas of pensions is important. Examples of the ranges in question can be seen within discussion boards on different topics such as accounting, de-risking, or funding and investment, which we have seen as valuable tools for generating constructive debate and dialogue between key decision makers.
To view sample discussion boards click here.
4. Formalise your agreed pension strategy
A pensions workshop, which includes key individuals within your organisation, is the ideal forum to enable you to discuss and agree your position on the points mentioned above. The deliverable from a detailed pension strategy workshop will put you in place to propose key principles and objectives to be understood and approved by your board.
Following board sign-off, your pension strategy can be articulated to your scheme trustees and form a framework within which all parties can work collaboratively and effectively. Importantly – you will be able to regain control of pensions through being proactive in all of the areas set out within stages 2 - 6 of our six point plan.