Case study | Workplace pensions consulting

Defence technology employer upgrades pension provision for long-term value

Using smarter scheme design to strengthen long‑term workplace pension outcomes for a client and their employees

Client overview

Business type

Technology and research

Locations

US
UK

Employees

Over 100 UK employees

Key outcomes

Successfully transitioned from a master trust scheme to a contract based pension plan
Reduced annual management charges from 0.40 percent to 0.28 percent, removing additional employer charges
Implemented a structured employee consultation and governance framework to support long term pension engagement and outcomes

The challenge

When the organisation first entered the UK market, they had no local bank account, no established infrastructure and only a handful of employees. For compliance reasons, NFP initially placed them into a basic master trust to ensure auto enrolment obligations were met.

As the business grew, existing pension arrangement no longer met their needs. They required a scheme offering better fund choice, stronger performance, reduced charges and deeper reporting capabilities.

Key challenges included:

A legacy master trust originally selected due to lack of UK infrastructure
Limited investment flexibility and no access to the wider fund range employees wanted
An outdated structure no longer aligned with the organisation’s size, sophistication or employee expectations
A required statutory consultation period due to the nature of the pension switch
The need for robust due diligence appropriate for a defence sector organisation

Adam Burn
Head of Pensions Consulting

The solution

NFP partnered closely with the employer to design and manage a full market review and provider selection process, ensuring the outcome matched both the organisation’s growth and its employees’ long term financial needs.

Our approach included:

Running a full market exercise and facilitating an onsite presentation day where the most appropriate providers met with a diverse employee pension committee
Supporting the client in selecting their new provider and working closely with payroll, HR and the new provider to prepare for a smooth transition
Establishing an internal pension governance committee made up of employees of different ages and backgrounds to oversee ongoing scheme health

The results

For their business

Lower charges and improved value

Reduced annual management charges from 0.4% to 0.28%, with all legacy employer charges removed.

Higher quality pension provision

Secured a higher quality pension arrangement with more flexible investment options and improved service levels.

Greater visibility and reporting

Enhanced oversight of member engagement and fund performance through full management information reporting.

For their people

Improved investment outcomes and choice

Provided access to a better performing default fund alongside a wider range of investment options.

A modern, flexible pension experience

Delivered a more modern and flexible pension aligned to a competitive, technology-driven labour market.

Employee voice in pension design

Introduced a dedicated employee pension committee to help shape the scheme and influence communications.

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