How much are you paying for your pension?
www.moneynews.co.uk > Pensions > How much are you paying for your pension?
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Money News |
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How much are you paying for your pension?
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The size of the scheme was the most important determinant in administration costs. These move from an average of £123 a member for schemes with less than 500 people, to just £21 for schemes with more than 40,000 members.
Apart from size the maturity of the scheme, the complexity of pension plan arrangements, the quality of the HR data and systems, and the approach of the sponsor towards the running of the scheme, all effected the cost of running it.
"The attitude of the sponsoring employee and trustees has a considerable impact on administrative costs," said Allan Course, head of administration consulting at Watson Wyatt.
He added: "How far are they prepared to go to minimise the risks of error, delays and failures of compliance? What speed of service do they require? What services are expected to be provided by the pensions department? What range of communications services do they expect to be provided to both the employer and the scheme members?"
The Watson Wyatt survey, which covered 163 schemes with a total membership of 4.6 million. The data shows that the average cost of administering smaller schemes in-house was a lot more than for outsourced ones. For medium-to-large schemes the costs are almost the same at about £50, but for large schemes the cost of in-house administration is less than outsourced administration.
Related News : Pensions |
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