Six out of 10 companies do not have a communication policy or do not document it, even though they see good communication as key to the success of their DC pension schemes, according to Mercer research.
More than two-thirds of survey participants, rated “limited member understanding” as one of the greatest challenges currently faced by DC plans, and nearly 90 per cent want to improve member education and understanding in the next 12-24 months.
Mercer’s latest DC survey analyses the DC pension provision of 354 UK companies with a total of 750,000 members and £18bn in assets under management.
“Being valued by employees” is rated amongst the top success factors for a scheme, 78 per cent, yet only one in six respondents,16 per cent, believe they have been successful in ensuring this is achieved. The survey also found that 34 per cent of sponsors have no formal objectives for their DC plan and 46 per cent have no defined success measures.