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...
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