Management Of A Closed Scheme
A scheme may be closed but the future financial wellbeing of past and current staff depends on the ongoing stewardship and management of the pension scheme, possibly over decades. The employer and pension scheme trustees have a continuing need for high quality advice – steps should be taken to ensure that the investment approach and on-going pension advisory and administration services remain suitable.
A closed scheme presents an ideal opportunity to seek efficiency improvements and to consider the make-up of the liabilities.
The quality of scheme data tends to be poor. With the scheme now closed to all accruals you have finite information which can be reconciled and placed in a format which allows the vast majority of scheme activities to be automated improving efficiency and potentially reducing costs.
We have designed a unique data analysis tool which allows us to examine the existing scheme data cost efficiently and provide a report at member level showing the data deficiencies and what rectification is required. The report replicates the Pension Regulators key output requirements.
Risk Management
Companies and trustees need to consider the risks inherent in their scheme as part of their ongoing scheme management. Spence & Partners can add value to this process in many ways including:
- Analysing the key risks faced by your scheme
- Carrying out a cost/benefit analysis of risk management solutions offered by insurance companies compared to other risk management options
- Support in implementing risk management solutions, including negotiating satisfactory terms of business if an insurance company solution is chosen
- Advising how each risk management option measures up against the initial objectives in terms of risk reduction achieved and value for money.
