How to offer employees a great value pension scheme

Anyone involved in the running of a pension scheme with assets of under £100m is likely to fall under the new Value for Members (VFM) regulations.

The VFM regulations are a new set of criteria that trustees of defined contribution pension schemes must assess their scheme against annually. 

The assessment includes a comparison of key aspects of an existing pension scheme against three other similar schemes to ensure that it continually delivers the best possible outcomes for scheme Members. The results of the assessment must then be included in the scheme's annual chair's statement. 

If you or someone else is a scheme trustee and, after completing the assessment, it appears that your current scheme falls short, there are two options: 

• Set out the immediate actions you will take to make improvements to the existing scheme; or
• Wind up the scheme and transfer the rights of your members into another pension scheme.

The assessment is in-depth, and Evolve has put together a free, online, health check so you can gauge how your current scheme stacks up. The Evolve health check usually takes less than five minutes to complete and asks four questions about key areas of the regulations with the results acting as a guide to your next steps. The Evolve health check is free to use at: valueformembers.info/health-check 

When looking for a scheme to compare with, or if you decide to wind up and transfer members to another pension scheme, you might want to consider Crystal as one of your pension scheme options.

Crystal is Evolve's defined contribution Master Trust with exceptional governance, administration and high performing investments, which has been demonstrating compliance with these high levels of regulation for several years.

In recognition of our work with the electrical industry since 1988, ECA Members can book a free 30-minute consultation with our Head of Client Relationships to discuss your VFM requirements and whether Crystal could be a good fit for your future pension needs.  

Why not take our health check soon and see how your current scheme stacks up, or contact Head of Client Relationships, Bill Finch for more information at vfm@evolvepensions.co.uk.