News & ArticlesDC provider selection and scheme design is a top concern for employers by Damian Stancombe Punter Southall seminars reveal DC concerns for employers Survey of 250 attendees at 'Rewarding your high earners' DC provider selection and scheme design top concern Consulting actuary Punter Southall has completed a series of successful seminars across the UK for employers titled 'Rewarding your high earners'. The sessions focused on addressing employers concerns for the continued provision of defined contribution pensions and included presentations covering the 2009 Budget, anti-forestalling legislation and the immediate and longer term impact it will have on pension planning. Around 250 finance directors, HR managers and pension managers representing employers attended the seminars and were surveyed for their views on the top concerns for defined contribution (DC) pensions going into 2010. The greatest concern for attendees was the selection of the DC provider and design of the scheme, closely followed by the upcoming challenges created by the introduction of Employer Duties planned for 2012, along with concerns about the choice of a default investment fund. However, sadly issues such as member engagement, at retirement education, and Governance scored relatively poorly, suggesting that these were not currently a priority concern – despite the Regulator only recently stressing his concerns about these areas not being fully considered by employers. Damian Stancombe, Head of Corporate DC at Punter Southall Group comments on employer responses and his views on auto-enrolment: "These responses from the attendees closely reflect our experience in dealing directly with UK employers. "Selecting the right DC provider and correct scheme design is clearly the top priority for many employers currently. For most this means the challenge of balancing the need to create something of value for members, with the cost of providing it. Many large corporates are also looking again at Trust based schemes in the light of Employer Duties and the ability to refund employee contributions within the first two years of membership. "It is not surprising that investment is a concern given recent turmoil in global stock markets highlighted by the extreme volatility of anything between 40% and 50% (in both directions) that many default funds have suffered. Worryingly many employers are not taking action to remedy this problem going forward and still need further guidance on how to achieve a more consistent performance. "The upcoming 2012 Employer Duties issue is one that also concerns many employers as they are uncertain how it will impact their business. "One particular area of concern that Punter Southall has relates to auto-enrolment. I wholeheartedly support the view that Employer Duties must happen and the sooner the better so that auto enrolment into UK contract based DC schemes is permitted en masse. Auto enrolment may be a necessary evil for the disenfranchised masses to force saving for the future, but my desire is that we look at the bands of people who are enrolled automatically and ask that this is reviewed. "The bands I suggest are that those who are under 30 years old are not automatically enrolled, as student debt and lifestyle means pensions are not really affordable for many. This age group is also going to be working a lot later in life, probably retiring at 70 or older, so why force them to save so early? Whilst Pension Credit is being washed out of the system I would suggest that those over 55 years old are also exempt, along with greater consideration given to those at the lower end of the pay scale. "This leaves the real core market to aim at. Take up rates will therefore be higher and more importantly, we believe it will be deemed a success." For media information related to Punter Southall, please contact: Penrose Financial André Flemmings/ Clare Murphy-McGreevey 020 7786 4811/4834 Notes to Editors: The Punter Southall Group was founded in 1988. The Group provides a unique range of financial services that includes actuarial consulting, employee benefits consulting, independent financial advice and investment services for pension funds, corporates and individuals. Punter Southall Group key facts:
Award winning Punter Southall is the only actuarial firm listed in the Managing Partners' Forum (MPF) '100 Best Professional Firms to Work For 2008' Report. This is a league table of professional firms ranked by employee engagement that surveyed over 700,000 employees and is used by The Sunday Times to compile their ‘Best Companies To Work For’ list. In May 2009, Punter Southall’s Transaction Services team were jointly awarded 'Pensions and Actuarial Due Diligence Provider of the Year – UK' in the ACQ Global Awards 2009. The team were also awarded 'Pensions and Actuarial Due Diligence Provider of the Year' by ACQ Finance Magazine in May 2008. In 2009, Punter Southall Group were ‘Actuarial and investment Advisory Firm of the Year-UK’ in the ACQ awards 2009. In October 2008, Punter Southall’s Transaction Services team was also awarded 'Pensions Due Diligence Firm of the Year' at the third annual Private Equity News Awards for Excellence in Advisory Service s. The following businesses are incorporated within the Punter Southall Group:
Geoff Tresman, PSFM Chairman, on BBC 'Your Money'
Click here to view Geoff's comments on 'the savings maze' faced by investors An in-depth survey on the provision of employer sponsored defined contribution (DC) pensions conducted by Punter Southall Financial Management, the corporate pensions adviser within the Punter Southall Group, has revealed that personal accounts are likely to be a failure when they are introduced in 2012. Click here to read more
A week in the life
Co-founder who refuses to stand still in his desire to be ahead of the game
The importance of a healthcare strategy
|
Contact UsFor general enquiries please use the enquiry form
For directions to our Offices click here |
