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Employee Benefits Strategy, Design & DC Governance

Pensions and benefits strategy consulting

Customised solutions to meet your specific needs

Effective design and implementation of a benefits plan for your employees plays a key role in delivering the business strategy in a cost-effective manner. Our approach begins with understanding where your business is today, where it is heading, and what this means for your people. We use this information to identify the role that employee benefits will play in helping you to achieve business goals. Through intelligent design, effective communication and efficient administration of their employee benefits arrangements, we help you implement optimal solution for your business needs.

Defined Contribution (DC) Pension Provider Selection Procedures

The long term nature of a pension arrangement means that choosing the right provider is vital. Although you would be able to replace the provider for future benefits should the pension provider not perform in line with expectations, it is clearly in the Company’s interests to select an appropriate provider at outset. It is even more important to the members who will be investing their own money for their future retirement provision.

What we offer

We have a research database of pension providers based on our experiences in the market and information given by pension providers. As part of this process the providers complete an annual questionnaire which is supplemented by site visits. The results of the research database enable us to rank each pension provider based on your specific needs. Depending on your own selected criteria we are able to assess each provider on:

  • Services they provide;
  • Investment choices they offer;
  • Administration capabilities;
  • Online offering; and
  • Cost to your employees.  

Based on our detailed research and the assessment of the providers, we review the terms submitted by each provider, taking into account the criteria identified by the Company being of importance. We use this to provide a recommendation report which identifies a shortlist of three providers for further consideration. We then recommend that the three shortlisted providers are invited to attend a provider selection presentation day. Provider selection presentations give the Company the opportunity to meet with representatives from each provider who would be responsible for delivering support services and get a feel for some of the ‘softer’ issues, such as cultural fit. It also gives the Company the opportunity to ask questions on areas that are of specific interest or concern to you.

We support the provider selection presentations by:

  • Arranging and hosting  the provider selection presentations,
  • Attendance at the provider presentations, in an advisory capacity; and
  • Providing a scoring template to assist you in making a final decision regarding the pension provider.

DC Governance

DC pension schemes, and in particular Contract-based DC schemes, are coming under increased scrutiny from the Pensions Regulator, who has issued a set of guidelines on DC Governance called the “6 Principles of good workplace DC pension provision.” With Auto Enrolment requirements affecting the majority of employers over the next few years, the number of workplace DC schemes will increase dramatically and as such this increased scrutiny from the Pensions Regulator is likely to continue.

What we offer

There is no “one size fits all” approach when it comes to the governance of work-based pension schemes, as such Deloitte can tailor the support provided to meet your needs. This can include:

  • Support in the creation of a Governance Committee;
  • Dedicated Advisory support for the Committee;
  • Attending Committee meetings;
  • Communication Strategy support;
  • Monitoring the performance and appropriateness of the selected pension provider; and
  • Monitoring the performance and appropriateness of the default investment strategy.

We would discuss your specific requirements for governance and agree the services that are required to create a bespoke service.

Benefits

Providing your employees with a qualifying pension scheme is a requirement of the new Employers’ Duties that have introduced Auto Enrolment. Putting strong governance procedures in place for your selected pension scheme(s) can provide the following benefits:

  • A well informed Governance committee that; flags pension issues to the Company, making them aware of “best practice” and any legislative changes; helps monitor compliance with Employers’ Duties requirements; and can give the Company the information needed to take any necessary action to make improvements;
  • An engaged and educated workforce who appreciate the benefits you are providing, which can support the Company’s recruitment and retention policy;
  • Reduced management time spent dealing with pension queries due to better educated employees;
  • Enables the Company to make any changes needed to the default investment strategy taking account the needs of the members;
  • Monitoring the service standards of the provider against pre-agreed levels and where the standards are not met, agreeing action to be taken to improve these;
  • Increased awareness of pension issues which reduces risk of non-compliance with legislation; and
  • Monitor the appropriateness of the pension scheme which you will be automatically enrolling employees into.

SMART pensions

SMART Pensions enables employers and employees to obtain National Insurance relief for employees’ pension contributions by restructuring the way contributions are made. The savings can be substantial and can help mitigate the additional costs caused by auto enrolment.

The most important factor determining the level of savings is the amount of employees’ regular pension contributions. This will depend of the number of employees who are members of the pension scheme and the level of employee contribution.

We have extensive experience of working with companies to achieve these valuable savings, whilst continuing to support the need for pension saving. Our approach includes an initial workshop with key personnel and discusses key issues including tax and system requirements, protection of pension and other benefits and developing a successful communications programme.

SMART Benefits - Delivering cost reduction and employee choice

SMART Benefits is an innovative approach to providing choice and flexibility around employee benefits, without the complexity of a full blown flexible benefits scheme. Our approach combines Deloitte expertise with a number of providers, removing the need for clients to identify multiple benefit suppliers. This approach provides a range of tax and National Insurance savings, as well as a number of the advantages traditionally associated with flex.

This offering will be of particular interest to organisations that are looking for:

  • Ongoing cost savings for the company and its employees
  • Improving access to higher quality benefits, along with a clearer understanding of the value of the Total Reward package
  • Improving recruitment and retention via motivational reward packages, leading to long term, sustainable business benefits
  • Becoming more efficient in benefits administration

Flexible benefits

Flex delivers tax savings to you and your employees, and is a powerful tool in attracting and retaining talent. Our approach focuses on the business case for Flex, and our Human Capital and Tax expertise, supported by strong relationships with technology providers, covers design, communication and implementation. Successful Flex requires the effective application of technology, which is why we focus on understanding your existing technology and business drivers to deliver a robust, customised solution to meet your specific needs.

Key contact

  • Andrew Mewis
    Partner,
    +44 121 6955 071
  • Jeremy Towler
    Senior manager,
    +44 1132 921 415

Find out more

Useful links

  • Meet the team
  • Submit a request for proposal
  • Contact us
  • Careers
  • Return to Pensions Advisory homepage
  • Return to Actuarial & Pensions homepage

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