Quarter of DC schemes have no service level agreement

clock

A quarter of FTSE 100 defined contribution (DC) pension schemes do not have a service level agreement (SLA) with their scheme administrator, according to research by Watson Wyatt.

The management consultancy firm says a total of 56% of contract-based schemes do not have a SLA, the part of a service contract that defines service level, while 84% of trust-based schemes do. Paul Macro, a senior consultant at Watson Wyatt, says: "There is definitely a need for further progress to be made on DC governance, especially for contract-based schemes. "It is fairly standard for trustees to be aware of the need to monitor the schemes. In contract-based schemes, there is no one who holds that responsibility and there is a gaping hole in the protection for members." The resear...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Advisers turn to smoothed funds to help manage volatility threat

Advisers turn to smoothed funds to help manage volatility threat

Decreasing exposure to equities also a popular strategy

Isabel Baxter
clock 26 March 2024 • 1 min read
Examining the 60/40: Building diversified portfolios in 2023

Examining the 60/40: Building diversified portfolios in 2023

Advisers have a lot to consider when it comes to portfolio diversification

Charlotte Moore
clock 14 April 2023 • 6 min read
Schroder Investment Solutions expands distribution of MPS

Schroder Investment Solutions expands distribution of MPS

Expanding the range of DFM choice on the Parmenion platform

Ayesha Venkataraman
clock 06 December 2022 • 2 min read