Challenges
Following on from the introduction of IORP II regulations in April, 2021, there has been considerable change with enhanced regulation / compliance, and associated increase in costs, leading to much consolidation in the Irish group DC pensions market.
DTS offers a wide range of support services to employers / trustees of group DC pension stand-alone schemes and master trusts in this new regulatory environment.
Pension Oversight Committees
As many stand-alone group pension schemes have now wound up and been replaced by master trust solutions, employers may find themselves with no representation on the trustee board and / or little or no access to the scheme trustees, as they would have had in their previous stand-alone pension arrangements. Whilst master trusts are expected to deliver economies of scale and reduced costs for members and employers, it is important for employers to maintain a level of oversight of their pension arrangements in the interests of their scheme members. This can be achieved through the establishment and operation of a pension oversight committee.
DTS has significant experience in the establishment and running of pension oversight committees in order to provide a framework for the oversight of both employer schemes under master trusts and stand-alone group DC pension schemes, and to advocate for both the employer and the scheme members.
The pension oversight committee acts as a bridge between the pension scheme / master trust provider, the trustees and the employer to set scheme goals, monitor the delivery of these goals and keep the scheme under review. In particular, employers will be keen to ensure that there is oversight in such areas as investment, member communications, administration, value for money / cost, etc.
Independent Review of DC Pension Schemes / Master Trusts
With many group DC pension schemes settled into their master trust solution, how has the chosen master trust provider performed? DTS provides a comprehensive review of master trust services, not just on an overall basis but specifically from the viewpoint of an employer’s own members and benefits. This review can cover areas including:
- Master trust provider profile and strength
- Administration and management
- Governance to include regulation, compliance and controls
- Member engagement and communications programme
- Investment fund range and performance
- Default investment strategy and performance
- ESG and sustainability
- Reporting
- Value for Money / member and employer costs
- Innovation and commitment to development
Other Services
DTS can support employers and trustees with:-
- Secretarial services to the board of trustees
- Chair services to the board of trustees
- Drafting and review of pension trust documents such as Trust Deeds, Rules, Deeds of Amendment, Deeds of Adherence, etc.
- Drafting and negotiating Service Level Agreements with 3rd party providers
- Services to employers / trustees on scheme wind-ups
- Services to employers / trustees in dealing with Pension Adjustment Orders
- Critical Reviews of administrators and investment managers
- Trustee training to meet requirements of Section 59AA of the Pensions Act, 1990 (as amended)