Case study | Workplace pensions consulting

Workplace pension governance

Using good governance to drive workplace pension value for a tech business and its people

Client overview

Business type

Technology

Locations

US-based

Employees

c.50 UK employees

Key outcomes

Reviewed a legacy workplace pension scheme through a formal pension governance framework.
Delivered a 20% reduction in member charges.
Supported long-term value for members without requiring a change of pension provider

The challenge

This client’s had limited visibility over whether their pension plan continued to represent good value for members pension plan had been established in the early days of auto-enrolment and had not been subject to regular governance review.

Employees in the default investment fund were paying the maximum permitted annual management charge of 0.75% - a level that had become increasingly uncompetitive as the pensions market evolved.

Key challenges included:

A legacy pension scheme established around the introduction of automatic enrolment, with no structured governance framework in place.
Default fund charges set at the charge cap, despite improved market pricing becoming available over time.
Limited internal resource to assess whether the pension continued to deliver value for money for members
A need to demonstrate that the employer was acting in members’ best interests, beyond minimum regulatory compliance.

Adam Burn
Head of Pensions Consulting

The solution

NFP conducted a detailed review of the existing pension arrangement, including an assessment of charges applied to members, the plan’s structure, and the employer’s responsibilities in overseeing a pension scheme. Through engagement with the existing pension provider, NFP challenged the level of charges being applied and secured a reduction of the annual management charge from 0.75% to 0.60%, without disruption to the scheme or its administration.

Alongside the charge review, NFP provided wider governance guidance, including:

Context around how pension charges impact long-term retirement outcomes, particularly for members earlier in their career.
Education on the importance of ongoing governance, rather than relying solely on regulatory minimums.
A framework for future reviews, recognising that value for money encompasses not only cost, but also investment performance, service quality and member experience.

The results

For their business

Stronger pension governance beyond minimum standards

Demonstrated a clear commitment to good pension governance, going beyond minimum regulatory requirements.

More competitive pension offering

Improved the competitiveness of the pension arrangement, supporting the attraction and retention of talent.

Confidence in value for money

Provided assurance that employer and employee pension contributions are delivering maximum value.

For their people

Lower charges and improved long-term outcomes

Delivered a 20% reduction in annual management charges, improving net investment returns over the long term.

Greater confidence in scheme oversight

Gave members increased confidence that their pension scheme is being actively monitored and reviewed in their best interests.

Improved outcomes for those further from retirement

Supported better outcomes for members further from retirement, where the impact of lower charges compounds most effectively over time.

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