JLT Paper warns that Employers must get Employees 'On Board'

JLT Paper warns that Employers must get Employees 'On Board' for DC schemes and keep them there

 

8th December 2011, London:  Based on the premise that defined contribution (DC) is the future of pension provision in the workplace, at least in the private sector, JLT Benefit Solutions Ltd (JLT) has today launched a thought leadership paper: Improving member outcomes in defined contribution pension schemes.

JLT's paper comes the day after the Pensions Regulator launches its 6 Principles for DC Governance and should help the industry develop and form best practice in the important retirement savings sector.

Duncan Howorth, CEO, JLT, says "The future of private (and possibly) public sector pension provision in the UK is, for the foreseeable future, DC and with this in mind JLT feel it is time to improve understanding of the DC journey particularly for employers and trustees so they can help  achieve good member outcomes. Simple steps can stop members from sleepwalking into retirement, creating a much needed connection between saving and income in retirement".

The paper highlights:

• Tailored communications to the relevant audience; start early and build
• Move administration Online to improve employee/ member engagement
• Introduce processes to create "active defaulters" to get members engaged with their savings
• Use "nudge" techniques to increase and sustain savings levels
• Monitoring engagement and responding with initiatives and communication

This paper will shortly be followed by the results of our latest JLT 250 Club survey, which is also concerned with DC pension provision. Both of these papers are forerunners to a seminal piece of research that JLT are currently undertaking with the Pensions Institute at Cass Business School.  The objective of this research, which will be published in early 2012, is to demonstrate, for the first time, a direct and quantifiable correlation between good pension scheme governance in DC arrangements, the outcomes for members and the return on pension expenditure.

Duncan Howorth concludes, "Our paper highlights the importance of employer engagement at all stages of the DC 'member journey', at JLT we see this engagement as much more than a   matter of paternalism, the employer has a vested interest in good member pension outcomes. Our research is part of our commitment to help both employers and employees get the maximum value from their workplace pension schemes".

--ENDS--

 

Enquiries:

JLT Group Corporate Communications                   JLT Benefit Solutions

Isabella Young                                          Simon Hazeldine

Email                                                    Email

+44 (0)20 7558 3387                                   +44 (0)1727 775 102

 

Editor's Notes:

Copies of the paper - Defined Contribution Pension Schemes: The Employer Role in Good Member Outcomes are available from Simon Hazeldine, JLT Benefit Solutions. Contact Simon Hazeldine (01727 775102). 

About JLT Benefit Solutions Limited

JLT Benefit Solutions Limited (JLT) is one of the UK's leading employee benefit providers offering a wide range of benefit and pension services, including administration, actuarial and pension consultancy, investment, wealth management, Self Invested Personal Pensions (SIPPs), Small Self Administered Schemes (SSASs) flexible benefits, healthcare, benefit communication and financial education.

Authorised and regulated by the Financial Services Authority, JLT employs over 1,300 professionals in the UK with revenues of some £132m in 2010. The acquisitions of HSBC Actuaries and Consultants Limited and iimia Wealth Management have supported JLT's continued expansion to become one of the four largest employee benefits consultancies in the UK. JLT was awarded Pension Scheme Administrator of the Year at the 2010 European Pensions Awards and won the Engaged Investor's Most Innovative Pension Consultancy Award in July 2011.

Other pensions and employee benefits companies within the JLT group of companies include: Profund Solutions Limited, Independent Trustee Services Limited and JLT Pension Capital Strategies Limited.

JLT Benefit Solutions Ltd is part of Jardine Lloyd Thompson Group plc.

http://www.jltgroup.com/employee-benefits/

Jardine Lloyd Thompson Group plc

Jardine Lloyd Thompson Group plc (JLT) is an international group of risk specialists and employee benefits consultants and one of the largest companies of its type in the world. JLT offers a distinctive choice to clients and partners through our combination of independence, scale and specialism.

The Jardine Lloyd Thompson group is quoted on the London Stock Exchange and employs over 6500 people worldwide and through the JLT International Network provides services in more than 130 countries.

http://www.jltgroup.com/