DC pension schemes - communications and education.

DC communications for members

The Pensions Regulator states that clear and simple communications are particularly important in DC pension schemes, where many important decisions are made by the members themselves. However, a large number of DC scheme members don’t fully understand their options and the choices they need to make.

By supporting members with clear, simple and helpful information, a scheme’s Trustees can help members get the best out of their scheme and better prepare for retirement.

LGIM produces quarterly factsheets on most of our range of DC daily dealing funds that are specifically designed for scheme members. The factsheets give information on a fund’s:

• Performance
• Objective
• Asset breakdown

DC communications for Trustees

We work with our clients and their advisers to provide support for DC scheme Trustees. This could be:

• A workshop for HR staff before the launch of a new scheme
• A presentation to DC scheme members and potential members on the benefits of joining the pension plan
• Investment insight, for example our monthly publication ‘Fundamentals’ which gives our current economic views
• Our secure client website where Trustees can access scheme information, transaction history and fund valuations as well as a wide range of useful literature.

Trustee education

DC pension scheme Trustees are required by law to have a broad knowledge and understanding of the law relating to pensions and trusts, as well as the principles relating to the funding of pension schemes and the investment of scheme assets.

The Pensions Regulator has set out the areas that it believes Trustees need to know, which can be found in its guidance on Trustee knowledge and understanding.

As pensions become increasingly complex, our Trustee education programme can be used to:

• Reinforce the Pensions Regulator’s web based learning programme
• Introduce Trustees to new concepts
• Provide a revision of previously visited material

Please contact trustee.education@lgim.com or call the events team on 020 3124 3595 or 020 3124 3160 for further information on our 2012 Trustee Education programme.