Keeping up to date with the regulatory guidance and legislative requirements associated with running your pension scheme, whilst ensuring that you are fully compliant, can be a challenge.
As conversation surrounding pension scheme governance grows, and with effective governance remaining an area of close scrutiny by the Pensions Regulator, here at BlueSky, we’re breaking down what truly great governance looks like, and how it can be achieved.
What is pension scheme governance?
Governance has become a buzzword for the pensions industry, quite simply meaning to look after your pension scheme. Governance is often misconstrued as being compliance, and simply ‘ticking the box’, however it is far more than reviewing performance reports and selecting providers.
Governance is about utilising those compliance tools, whilst ensuring that key decision makers have the time and resources to consider and discuss those important matters that are going to make the difference.
When considering how well your scheme is governed, you’ll likely look at your trustees. Although often the first focus of governance, trustees are simply the directors of governance, and do require assistance. Trustees need to be able to apply governance through each of the many different layers of the way in which the scheme is operated.
Whether it be at administration level, or through to trustees and scheme management, great governance across the board is vital in ensuring that your pension scheme continues moving forward.
So, how do you achieve great governance?
To create truly great governance, a robust framework is required. Here at BlueSky, we utilise a strategy that looks specifically at the governance surrounding pension arrangements. We apply this framework to the administration, the way in which reviews are undertaken, and the way that the risk registers that we are familiar with are controlled, managed and monitored ongoing.
You’ll often see well intentioned employers, scheme managers and trustees giving governance a go, however great governance needs structure. Formal reviews are required, alongside regular timing, and this process must be repeated and repeated to ensure success.
While good governance will keep your scheme afloat, great governance will ensure your pension scheme continues moving forward, whilst enabling your trustees to strive for better member outcomes.
Here at BlueSky we practice great governance with our pension arrangements daily. Watch the latest video as Director of Operations, Jessica Rigby, discusses the importance of governance and how we achieve it.
To learn more about how BlueSky can assist you, or to speak with a member of our expert team, get in touch today. Call us on 01322 308 249 or get in touch via our contact page.