At Broadstone we proactively work with employers to help them manage their positions within multi-employer, often industry-wide, Defined Benefit pension schemes.
These schemes typically include public sector arrangements such as the Local Government Pension Scheme (LGPS) as well as schemes provided by TPT Retirement Solutions (the Pensions Trust).
Many employers will have historically joined a multi-employer defined benefit pension scheme as an alternative to setting up their own. There were good reasons for this, as on the face of it multi-employer schemes offered advantages compared to going it alone. These included:
- The pooling of scheme advisory and administration costs
- Lower investment charges
- A reduced requirement for local administration
The Changing Pensions Landscape
The pensions landscape has changed significantly over the course of the past 10 years and employers are now needing to address many different issues related to multi-employer DB schemes. These include:
- Increased contributions
- A lack of control
- Section 75 Exit Debts
- Orphan liabilities attributed to insolvent participants
What can be done to manage the costs and the risks?
Sadly, there is no ‘magic bullet’ that will simply fix the issues associated with defined benefit pension provision.
However, and positively, there is much that can be done to help employers who are affected to control and manage their positions within multi-employer schemes. The key is in being well informed and effectively positioned to do so.
For many employers we advocate creating a long-term practical and viable plan to help keep the costs and risks under control.
Our experience and expertise
We have significant experience and expertise advising employers that participate within the various LGPS arrangements and those provided by TPT Retirement Solutions.
We are the appointed advisers to the employer groups of the TPT Growth Plan and the TPT Independent Schools’ Pension Scheme.
Our clients include charities, independent schools and other not-for-profit organisations.