th May 2016 Retirement planning in the 21 Century€¦ · offerings, auto-enrolment, flexible...
Transcript of th May 2016 Retirement planning in the 21 Century€¦ · offerings, auto-enrolment, flexible...
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Whilst the Chancellor’s last budget didn’t releasethe tax fireworks expected, he did potentially lighta long burning fuse with the introduction of theLifetime ISA (or Lisa as she is alreadyaffectionately known). The announcement hasalready led to the Work and Pensions SelectCommittee re-opening its inquiry into auto-enrolment after experts raised concerns that LISAcould lead people away from workplace pensionsaving.
Employers and trustees are therefore facingincreasing challenges in designing benefitssystems that help achieve the goal of ensuringemployees can afford to retire. Whether it ischanges to the State Pension, additional savingsofferings, auto-enrolment, flexible working or thelifetime allowance restrictions, the existing benefitlandscape is no longer fit for purpose.
To help look at how retirement savings maydevelop and the challenges facing HR andReward, we are delighted to welcome CharlesCotton, CIPD’s Public Policy and HR PracticeDevelopment Adviser - Performance and Reward.Charles directs the Institute’s performance andreward research agenda and will be sharing histhoughts on the wider benefit landscape and whatemployers and trustees need to consider.
Looking at the impact of changes on existingschemes and the future challenges for pensiontrustees will be Sarah Jeffrey-Gray, who hasrecently joined P Pension Trustees following thepurchase of Temple Trustees Ltd.
Seminar details:
1¼ hours of PMI CPD may be recorded for Pi seminars, based on your assessment of the seminar’s value to you
Venue: The UK Chamber of Shipping, 30 Park Street, London, SE1 9EQ
Timings: 8.45 a.m. arrival and breakfast9.15 a.m. - 10.20 a.m. seminar10.30 a.m. finish and refreshments
We look forward to seeing you and would begrateful if you could advise your availability bytelephoning Jennie McMurtry on 020 8879 6500or by e-mailing us at [email protected]
Please do share this invitation with any colleaguesyou feel would benefit from attending.
Breakfast Seminar
Retirement planning in the 21st
Century
Pi Consulting2 Allington Close
Wimbledon Village London SW19 5AP
Tel: 020 8879 6500 Fax: 020 8879 6501
Thursday, 19th May 2016
Amanda BurdenPi Consulting
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Retirement planning in the 21st Century
Breakfast Seminar
Agenda
0845 Arrival, registration and breakfast
0915 Welcome and opening comments Susan Smith, Pi Consulting
0925 An HR perspective Charles Cotton, CIPD
0955 A Trustee perspective Sarah Jeffrey-Gray, Pi Pension Trustees
1015 Open forum
1030 Finish and refreshments
Thursday 19th May 2016
UK Chamber of Shipping30 Park StreetLondonSE1 9EQ
Venue:
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Thursday, 19th May 2016
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©Pi Consulting 2016 The home of good pension scheme governance
0915 Opening comments - Susan Smith, Pi Consulting
0925 An HR perspective – Charles Cotton, CIPD
1000 A Trustee perspective – Sarah Jeffrey Gray, Pi Pension Trustees
1020 Open Forum
1030 Finish and refreshments
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©Pi Consulting 2016 The home of good pension scheme governance
Independent
Independent
Carriage clock Smart phone
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The HR perspective Retirement planning in the 21st Century
Charles CottonCIPD Performance and Reward Adviser
19 May 2016
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Short history of pensions and HR
DB• Finance’s role• HR’s role
• Recruitment and selection; retirement
DC• Finance’s role• HR’s role
• Scheme selection
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Managing the people risks
• Employees don’t value pensions
Perc
eive
d va
lue
Time
Traditional Viewof Pension as areward
Employee'spercieved valueof pension
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Managing people risks
Employees:
• joining the organisation
• staying with the organisation
• engaging with the organisation
• retiring from the organisation
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Managing people risks
Pensions changes
• automatic enrolment
• annual and lifetime allowances
• state pension
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Managing people risks
From pensions to long-term savings
• pensions freedom and choice
• lifetime ISAs
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Freedom and choice risks…..
• employee inertia - general lack of financial awareness and understanding of their options plus behavioural biases
• consequences if employees act - they may not be fully aware of the negatives, such as:
• running out of money before they retire• becoming a higher-rate tax payer• reducing their AA from £40,000 to £10,000
• pension scams• fund management strategy still based on annuity
purchase• employees assume that their employer has selected
a good solution
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….. and consequences
• employee engagement• retirement becomes a potential performance, health
or legal issue• the pension becomes remote from the business
strategy• it doesn’t support culture, values or principles the
company needs• brand image (recruitment/retention of employees and
clients)
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An integrated and aligned response
• employee wellbeing – lower employee absenteeism and turnover and higher performance
• financial wellbeing – stress, concentration, diet and illness
• pay rates• financial benefits (risk-benefits) • non-financial benefits (eg recognition, flexible
working)• how rewards are allocated• savings and loans• financial education (information, advice and
guidance)• communications (across a diverse, mobile and
demanding workforce)
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©Pi Consulting 2016 The home of good pension scheme governance
Common influences
Practical issues and experience
Member engagement and communication
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©Pi Consulting 2016 The home of good pension scheme governance
ADMINISTRATIVEEASE
COSTS OFADMINISTRATION
ACCESSIBLECOMMUNICATION
FOR MEMBERS
EMPLOYERCULTURE
AND OBJECTIVES
INTERPLAY WITHAUTOMATICENROLMENT
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©Pi Consulting 2016 The home of good pension scheme governance
Investment and member inertia
Default funds – moving away from life-styling
Savings rather than pensions vehicle?
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©Pi Consulting 2016 The home of good pension scheme governance
Archaeological dig for any past promises made about future pension provision
Mixed experience of some provider platforms
Balance between employer and member objectives and control
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©Pi Consulting 2016 The home of good pension scheme governance
Trustees have no duty to give advice but do have a duty to provide information
Are members able to make an informed choice?
Do members actually understand their choices?
Member communication vital
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©Pi Consulting 2016 The home of good pension scheme governance
Demographics of membership
texts or office-based workforce
using email/online access/apps –
catering for different age groups
Presentations Papers
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©Pi Consulting 2016 The home of good pension scheme governance
Regularity of communication
Have Trustees asked the membership what information they would like?
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©Pi Consulting 2016 The home of good pension scheme governance
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©Pi Consulting 2016 The home of good pension scheme governance
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©Pi Consulting 2016 The home of good pension scheme governance
Recruitment of new MNT candidates
Continuing raising of bar for DC
Broader retirement and savings planning focus
More taxation changes on the horizon spared in the last budget – “not the right time”
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©Pi Consulting 2016 The home of good pension scheme governance
Future seminar dates for your diary:
Thursday, 8 September 2016Thursday, 24 November 2016Thursday, 23 February 2017
If you have any suggestions for future seminar topics, please let us know.
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©Pi Consulting 2016 The home of good pension scheme governance
We would welcome your feedback on: Subject Content Format of session Time Venue Arrangements
Please email us at [email protected] via the seminar page on our website www.piconsulting.co.uk