Pension schemes urged to use investment disclosures as an engagement tool

Pension schemes should look to use the upcoming investment disclosure requirements as an opportunity to engage members and help them better understand their pension, Sackers has said.

Sackers senior associate, Sarah Henderson, urged pension schemes to use technology effectively to enhance member engagement, highlighting the new requirements as an opportunity to use detailed and complex information “for good”.

Henderson highlighted a number of channels that are already being utilised to deliver accessible messaging to members such as email notifications, e-newsletters, social media posts, and partnering with employers’ flex platforms and financial wellbeing initiatives.

The new requirements will see trustees produce an implementation statement, reporting on how well the scheme has followed the policies outlined in its Statement of Investment Principles (SIP).

This requirement will apply to any scheme’s first annual report finalised after 30 September 2020, with the Pensions and Lifetime Savings Association recently publishing guidance to support trustees navigating this.

Henderson noted that whilst the “central policy intention” behind the initiative is to improve member outcomes through increased transparency, the primary impact so far has been an added compliance burden for schemes.

Looking to previous changes to DC chair's statements, Henderson noted that The Pensions Regulator's (TPR's) hand had been "tied by legislation", arguing that a strict approach to compliance review can result in schemes focusing overly on compliance and not on member engagement as intended.

She clarified, however, that there is “some really good information” included within the disclosures nonetheless, urging trustees to be creative and use technology to better engage members with this information.

The Office for National Statistics (ONS) also published figures today (7 August) revealing that the number of adults using the internet daily or almost every day has risen to record levels, with 89 per cent of adults using the internet daily or almost every day.

Furthermore, over the past three months, 76 per cent of adults had used the internet for banking, whilst 81 per cent had used the internet to look for information on services and goods.

    Share Story:

Recent Stories

Climate Investing
Laura Blows speaks to Aled Jones, Head of Sustainable Investing for Europe at FTSE Russell, and Adam Matthews, Director of Ethics and Engagement for the Church of England Pensions Board, about the role of climate investing within a pension fund portfolio.

Managing volatility
In the latest Pensions Age podcast, Laura Blows speaks to Cambridge Associates head of European pension practice, Alex Koriath, about the Covid-related market volatility and how pension funds can prepare for the challenges ahead

De-risking options for pension schemes
In this latest Pensions Age podcast, Linklaters' Sarah Parkin talks to Laura Blows about the wide range of choice available to pensions schemes for the partial, or full, removal of their risks

Risk transfer opportunities
Laura Blows speaks to Lisa Purdy, Head of Fiduciary Distribution at Legal & General Investment Management and Gavin Smith, Pricing and Execution Director - UK PRT at Legal & General, about the impact of the recent market volatility on the bulk annuity and risk transfer market and the potential opportunities for the future

Bulk annuities during coronavirus
Laura Blows speaks to Just business development manager Prash Mehta about the impact of coronavirus on transactions