Defined Contribution (DC) Schemes
The trend for employers to switch from Defined Benefit pension provision to Defined Contribution schemes is well established, and consequently appointments to DC schemes are an increasing part of our business.
While DC does not present the same funding style challenges as DB there are still many issues that face DC Trustees. These range from DC specifics such as investment choices and performance, employee engagement and retirement choices, through to more universal matters such as adviser monitoring and exercise of discretions. ITS Directors are experienced in dealing with DC schemes, and are well placed to assist Trustee bodies with these issues.
Some employers have opted for contract based schemes, rather than trust based, which is understandable. However there is no doubt that the governance burden will become significantly more than was initially envisaged. In these situations, we would be happy to act in a quasi trustee capacity to help the employer address the governance issues arising.