Pensions - Articles - Industry risks forgetting DB at its peril, says PTL

 Commenting, Richard Butcher, Managing Director at PTL, said:

 “For years DC schemes were given little more consideration than five minutes at the end of trustee meetings or the signing of a contribution cheque by employers. But now it appears the tables are turning within the industry and DB is becoming the one left on the outside looking in.

  

 “The new pensions freedoms and continuing auto enrolment have pushed DC up the priority list with a fresh focus on good member outcomes, proper engagement and appropriate vehicles for employers and their staff alike – all of which is very welcome. With this focus however, it is important that DB schemes continue to be given the attention they require ahead of some substantial deadlines. GMP reconciliation, data requirements, funding reviews, new PPF levy and accounting standards and potential buyout windows are all on the agenda, but a lack of focus could lead to the danger of schemes falling behind.”

  

 Butcher continued: “We are all well aware that DC is the long-term future and the new options for members will take some communicating and administering in order to support future members in retirement. But DB is still very much part of the present and has some considerable obstacles to negotiate in the coming months that require attention and expertise from all involved. It is therefore crucial that the industry is not swept up in the excitement of new products and services to the detriment of DB, but that we continue to meet the demands expected of us.” ENDS