Independent Governance Group (IGG) has launched a new services model, IGGnite, designed to provide streamlined and cost-effective professional trusteeship and scheme management services for smaller pension schemes.

The alternative governance option aims to allow smaller schemes with £150m or less to access scheme management and investment solutions at a cost typically reserved for larger schemes.

IGG said that, for many, running a small pension scheme is often expensive and time-consuming.

Given this, IGGnite combines multiple small schemes under one shared trustee, in order to deliver economies of scale, without the complexity and cost of a traditional consolidation model where schemes are bundled.

The service is also designed to reduce the administrative and regulatory burden for sponsors, while enabling schemes to retain control, with the trustee, over the future of their scheme and maintain their structural separation and independence.

With IGG as the professional corporate sole trustee (PCST), members and sponsors are also expected to benefit from faster decision-making, professional standards and the ability to explore broader market opportunities, whether schemes are pursuing buyout or choosing to run-on.

IGGnite is powered by IGGiQ, IGG’s recently launched digital pensions platform, which was designed to enhance pension scheme management.

Commenting on the launch, IGG CEO, Andrew Bradshaw, said: “We believe all pension schemes should benefit from high-quality governance, market-leading technology and access to the full range of expertise, tools and services our industry has to offer.

“The launch of IGGnite is a key development in realising this aim and enabling all schemes, regardless of size, to access the benefits of professional trustee support."

IGG head of professional corporate sole trusteeship, Annabelle Hardiman, added: “We’ve seen a growing demand for PCST appointments as trustees and sponsors grapple with the increasingly complex scheme management and regulatory compliance requirements of managing a pension scheme.

“This trend is also driven by the spotlight on value for money and the recognition that the PCST model can often lead to quicker and more efficient decision-making.

“More than just a PCST model, IGGnite provides schemes with greater access to independent, high-quality advisers and service providers, at a more affordable cost.

“The full-service model enables sponsors to focus on running their businesses whilst we, as trustee, look after those at the heart of what we do, our scheme members.”

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