On-going Governance for Auto Enrolment
One of the things that makes Able Governance different is our deep understanding of the governance of pension arrangements.
Having dealt with hundreds of pension schemes over the last 25 years our governance specialist, Nick Boyes, is recognised as having a deep understanding of how pension arrangements operate, and how they are best managed.
Most small companies will select a mastertrust as their auto enrolment pension provider (for example NEST or NOW Pensions). Alternatively, they may go for a group personal pension plan (GPPP).
Whichever route is chosen, the governance will be in place at a 'macro' level: the trustees or administrators of the plan will have responsibility for determining matters such as the default investment fund, etc, but the level of governance at the 'micro' company level can be very minimal.
Able Governance can help set up an independent governance committee (IGC) at a local level in order to provide the crucial performance reviews: both from an investment point of view, and from a service perspective. It also provides the vital oversight to ensure that the scheme is being properly handled and that any risks are considered and addressed.
Communication with employees is vital to ensure that the scheme is seen as a valued benefit and as an effective tool to enable people to reach their retirement goals.
This essential governance can be provided in a number of ways:
- An individual independent governance committee for a single employer's arrangements
- As independent trustee for trust-based occupational pension schemes
The amount of common ground for each of these models is surprisingly large, and our experience as a professional independent trustee can be invaluable in making this monitoring effective.