FDs at the forefront of workplace pensions
A new study claims the importance of the FD to workplace pensions will continue to grow as changes to the system, such as the rise in popularly of defined benefit schemes, occur.
The latest National Association of Pension Funds survey of its members has also found that while there's now stability in the pensions landscape, the operating environment will radically change in the years ahead.
NAPF CEO Joanne Segars says: “While finance directors are already pivotal to the world of workplace pensions, much of this change, led by the 2012 pension reforms, will only add to their importance whether they are a trustee or not.”
Forty per cent of private sector respondents to the survey said they expect no amendments to be made to their pension arrangements during the next five years. Twenty-two per cent expect to modify their schemes while retaining at least some traditional defined benefit elements, and 15 per cent expect new employees to be offered pure defined contribution schemes.
The survey also revealed that FDs are the board members most likely to be the trustees of workplace pension schemes. However, FDs tended to be trustees of smaller schemes as only 25 per cent were trustees of schemes of more than £750m.
Segars warns FDs that they shouldn't underestimate the impact of the 2012 reforms, especially when it comes to auto-enrolment.
“It is important that as part of these reforms there is some give and that is why the NAPF has been pushing the government for deregulation to help finance directors keep any additional costs to a minimum,” she says.
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