“We have a relatively new but growing contract-based DC scheme which we would now like to set in a formal governance arrangement and I would be interested in hearing from others who have DC arrangements, particularly contact-based, and how they structure their governance arrangements, e.g. the constitution of the overseeing body, how often it meets, what reviews it makes of the DC provider and the type of communications it has with its members, etc. Any other information would be helpful.”
We have a Trust- based scheme. Even with Contract- based, I think it is important to have at least 2 meetings a year with an investment review on both occasions. We ask the Investment managers to come to both meetings. It is vital from a governance point of view that the trustees/committee monitor performance and bring in new funds if existing funds are lagging behind.
I am afraid we got our pension advisers (Mercers) to write a terms of reference for a committee. The committee meets once a year which the Co Sec chairs with representatives from HR, finance and the members. We communicate once a year with members and review the DC provider’s performance at that meeting.