Effective governance for DC pensions
Gary Smith, Head of DC Consulting at Capita Employee Benefits, talks about strong governance for defined contribution pensions.
Having strong effective Governance in a defined contribution pension scheme is so important, you know we’ve seen the growth of Master Trusts in the market, we’re seeing that roadmap really pan out and I think its important that as part of that growth we really understand really invest in the Governance framework in these Master Trust solutions, they’re so important for the individual members of these schemes.
We’ve been out and talked to a number of members as part of some research we’ve done recently and members and individuals really value, get a lot of comfort from knowing they’re a strong competent knowledgeable and independent people who are looking after their interests, who are running the schemes with them in mind and their needs and their interest in mind and so important and comforting to them.
I think we need to focus in the industry more on understanding and valuing that and probing that more and driving up the levels of Governance but also the levels of Governance in terms of focusing on the individual members.
It’s quite frustrating maybe that we’re not seeing that focus we need as a market, as an industry to begin to shift the focus towards understanding and probing and evaluating the Governance function within a lot of these Master Trust products that are in the market place, it can be a real differentiator quite frankly.
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