Myners, Morris, Managing Costs - 3 good reasons to review your pension advisers now
“It is best practice for pension fund trustees to invite tenders separately for actuarial advice, strategic investment advice and fund manager selection advice, as proposed by the Government in its recent revisions of the Myners principle on expert advice.”
The Morris Review of the actuarial profession, March 2005
It is estimated that employers and trustees pay about £2.5 billion each and every year for advice and services to help operate their pension and employee benefit programmes. That's £2.5 billion paid to actuaries, pension advisers, investment consultants, pension administrators, communications professionals and others.
But, based on survey material produced by a well-known independent pension market research firm,* 28% of these employers and trustees had decided to review their appointments for a variety of reasons including cost and performance-related concerns. That's up from 20% just two years earlier. Taken at face value, this implies that hundreds of millions of pounds are being spent every year for advice and services that are falling well short of the mark.
And, following the ground-breaking findings and best-practice recommendations of the Morris Review of the actuarial profession, reviews of actuaries and investment consultants are set to soar.
All of this points in just one direction: careful and professional management of your pension advisers, together with regular evaluation and market testing, is no longer a luxury but an integral part of the business agenda that can pay handsome dividends in terms of improved performance and more competitive charges.
Whether your current relationships are satisfactory or not, PAR's professional and independent outsourcing and relationship management techniques will help you achieve optimal service delivery, maintain strict budgetary control and satisfy today's tough governance standards.
*6th Annual Occupational Pension Scheme Survey published by The Pension Fund Partnership.