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Pension Clicks

In this edition of Pension Clicks, we summarise the new process for DC bulk transfers without member consent, look at how you can make DC schemes work for diverse memberships and explore how trustees can better understand scheme investment costs.

New process for DC bulk transfers without member consent
New rules from 6 April 2018 are intended to simplify bulk transfers without member consent for those DC rights that do not include underlying promises or guarantees. The DWP has published guidance to help trustees comply with the regulations, covering matters such as choosing an appropriate adviser, charge cap maintenance and other good practice considerations.

Making DC work for a diverse membership
It is important to understand DC outcomes for a ‘typical member’ – but we need to understand the outcomes on an individual member basis to help target resource in the places where it is most needed. This might be increased contributions, changes to the investment design, default target retirement age or communications to change member behaviours.

Getting up close with costs – how can pension trustees better understand what they are buying?
Everyone wants value for their money. But you cannot assess this if you do not understand the true cost of your investments. In this paper, Aon and Northern Trust outline their perspectives on how pension trustees and executives can better understand investment costs.

How to maximise returns in a risk-controlled way
Maximising returns is one of the responsibilities of pension scheme trustees. How can trustees maximise their own effectiveness, and that of their investment portfolio, to deliver the best returns for their scheme? Aon’s Daniel Peters and Sonia Gogna discuss in a Q&A with PMI News.

Seeking return – new investment whitepaper
In the current low-return environment, it is important that your investment strategy actively seeks return. We explore the ways you can do this in our latest whitepaper.

How active are you?
We have all seen the statistics saying that an active lifestyle can make you happier and live longer. What if we apply this same mind-set to your investments? Will an active approach result in healthy, long-term investments? Sion Cole looks at what ‘being active’ means in the context of scheme investment.

All you need to know about bulk annuities
Chapter 1 of our annual Risk Settlement Market Review looks in depth at bulk annuities – what is the current market like, how should schemes prepare for a bulk annuity transaction and how can smaller schemes benefit? You can also download a copy of the full 2018 Market Review and listen to the podcast discussing its contents.

Take part in an experiment! Institutional investors' decision-making project
We emailed you early in May to tell you about The Institute and Faculty of Actuaries’ sponsored research into the behavioural aspects of pension scheme decision-making. You can read more about the initiative here. In this next exciting phase of research, we launch the first in a series of quick fire 10-minute experiments from City, Leeds, and UEL Universities, involving multiple choice questions and scenarios about DB and DC schemes.

Is sole trusteeship the future?
The sole trusteeship market is a growing one. Paul McGlone examines some of the associated benefits and challenges and asks if it really is the governance model of the future, in this article, first published in Professional Pensions.

Responsible investment update
In our quarterly update, we look at regulatory and political developments around responsible investment, including consultations by the UK Parliament, the DWP and the European Commission.

Benchmark your global benefits governance strategy
Our triennial Global Benefits Governance Study is now open – take part and you can request a free benchmarking report comparing your approach and performance against the rest of the respondents.

Last chance to take part in our 2018 Fiduciary Survey
Our UK Fiduciary Survey closes on 7 June – take part to receive a full copy of the findings, and have a chance to win an Apple Watch.

Cyber response planning for pension schemes
How can pension schemes prepare for potential cyber risks? Vanessa Jaeger explores the topic in an article first published in PMI News.

Week in Markets
A summary of market movements over the past week.

Success at the UK Pensions Awards
At the awards, run by Professional Pensions, on 23 May, Aon won not one but two awards, and was highly commended in a third category. The judges awarded us Risk Reduction Adviser of the Year and DB Investment Innovation of the Year, and we were highly commended in DB Multi-Asset Manager of the Year.

Aon in the press
This month, we examine why a multi-factor approach can enhance DC schemes’ equity portfolios and publish an introductory guide to responsible investment.

We act as lead transaction adviser on National Grid’s £2bn longevity swap and explain why we believe the longevity swap market is back in business.

Our survey shows a rise in scheme members’ transfer value requests, while Vicky Kydoniefs joins as a partner in our fiduciary management team.

June 2018

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Dates for your diary

Pensions training dates available

Sign up here to reserve your place on any of the courses on our 2018/19 pensions training calendar.

12 June, London
Investment Conference: Gearing up for Change
How can investors improve a traditional asset allocation with more niche investment ideas? An exclusive event for key decision makers of the UK’s largest and most complex pension funds and institutions.

13 June, London
DC Strategic Summit
Join us to hear detailed debates on all the pressing topics in DC.

28 June, London
Reducing longevity risk for ESPS groups
At this conference specifically for members of the Electricity Supply Pension Scheme, hear strategies for reducing the longevity risk you face.

4 July, London
Portfolio Prepared
Join Aon, Portfolio Institutional and guest speakers to discuss how the latest investment trends can help institutional investors plan and prepare for challenging markets.

9 July, London
Better DC Pension Decisions workshop: using behavioural science to improve fund decision-making
Attend this workshop, run by Aon with Behave London, and find out how to spot and overcome the behavioural biases which can get in the way of effective decision-making.

20 September, Frankfurt
Rethink 2018 – European Pension and Lifetime Savings Conference
Addressing the key aspects of managing corporate pensions and retirement provision locally and globally.

Also on our website

'To and Through' to Retirement: Market Developments
Listen again to our webinar to find out more about the evolving DC retirement solutions available.

Global Pension Risk Survey – global findings webinar
Listen again to our webinar sharing the findings from our global GPR Survey series.

Online monitoring tool for your scheme
Our Risk Analyzer tool is now used by over 750 schemes to monitor various financial and risk measures. This video gives you an example of how Risk Analyzer could help you.

Read the latest update from our Retirement and Investment blog.