52% of employers say keeping up with governance rules as a key challenge when operating a DC scheme
Employers prioritising complying with regulation before member support
The Government needs to listen to employers before making any further changes to pensions
Employers want to do the right thing by employees, with the majority (71%) say that a short-term objective is to improve engagement with their defined contribution (DC) scheme, however keeping up with changing regulations is making this difficult. 52% of respondents named keeping up with governance rules to be a key challenge of operating a DC scheme and 48% say they need more “regulatory support”.
Rather than prioritising the needs of the member, continued changes to the regulatory landscape means employers are prioritising complying with regulation. When asked about the long-term objectives for operating a DC scheme, 66% of employers responded “to keep up with regulatory change”.
Paul Leandro, Partner at Barnett Waddingham, commented: “Our research shows that frustrations remain around the tinkering of the rules by Government and employers are finding it difficult to plan over the long-term because of the spectre of further change.
“The Government needs to listen to employers before making any further changes. We fear that any more major changes to defined contribution arrangements could lead to disengagement of UK corporates from the pension system.”
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