Defined Contributions

Keeping your scheme on track and compliant.

How we can help

Your Defined Contribution Pension Scheme will require complex governance to ensure all areas are implemented, managed efficiently and continuously monitored to remain compliant in a rapidly changing regulatory environment.

Ensuring the scheme is efficiently run and in line with best practice requires attention to detail which can become intense and complex.

At Broadstone, our unbiased approach balances the requirements of trustees, employers and scheme members to help keep objectives on track, ensure the scheme is appropriately managed and provides the best outcome for members. We can guide you through the minefield of litigation and analyse your investment options to ensure that your scheme is fair and represents good value.

We also provide administration services specifically to facilitate the smooth running of your defined contribution pension scheme. Our scheme administrators have processes in place to ensure that members’ benefits are paid in a timely manner and that they receive effective communication. This includes reporting and online platforms that allows members to view their pension at any given time.

employees having a meeting around a table

Case study: Mutual shipping insurance company

Client situation

Scheme Actuarial and Investment Consultancy services are provided by other firms and Broadstone provides corporate advice. The investment strategy had already been reviewed and the Company wanted to look at the opportunities to control the costs but not disrupt its good employee relations. The Scheme has been closed for several years and has a maturing membership profile.

Our approach

We carried out a high level review to identify which changes to the Scheme would make significant savings. This included looking at full closure of the Scheme, reducing future benefits, controlling the increases in accrued benefits, member contributions, enhanced transfer value and pension increase exchange exercises.

In addition, in order to reduce funding volatility it was decided to buy annuities to secure benefits for some of the current pensioner members. This was done on a selective basis to maximise value within the budget set.

Outcome for the client

The Company decided to restrict the increases to pensionable salaries as this had the benefit of reducing the deficit immediately and providing greater control in the future. The Trustees and their advisers agreed to the Company’s proposals and the potential savings identified were nearly £6m. In addition, good employee relations were maintained.
Our specialist insurance broking team ensured that the pensioners had annuities successfully set up at a cost much lower than the Scheme Actuary had expected.

Need more help? Contact us today.