In today’s pension world of ever-more regulation and increasing burden of understanding on Trustees, how to look at the landscape can be challenging. Strategies are more complex, markets are less forgiving and stakeholders are more critical.
Below, we have listed five key questions Trustees should be asking about the organisation of their defined benefit pension scheme.
Questions to ask
1. Do I have sufficient time to manage my plan in a continuously changing environment?
2. How is our speed of decision making? Do we miss opportunities? Do we run unnecessary risks?
3. How is our pension fund organised? What should we do in-house? What can we outsource? Is fiduciary management an option?
4. What levels of delegation do we feel comfortable with? How do we achieve alignment between all actors to deliver our promise?
5. How do we spend our money? Can we save money on advisors? How much do we spend on investment managers? Do we spend enough on oversight? Can we gain a few basis points on rebalancing?