Whilst the Chancellor’s last budget didn’t releasethe tax fireworks expected, he did potentially lighta long burning fuse with the introduction of theLifetime ISA (or Lisa as she is alreadyaffectionately known). The announcement hasalready led to the Work and Pensions SelectCommittee re-opening its inquiry into auto-enrolment after experts raised concerns that LISAcould lead people away from workplace pensionsaving.

Employers and trustees are therefore facingincreasing challenges in designing benefitssystems that help achieve the goal of ensuringemployees can afford to retire. Whether it ischanges to the State Pension, additional savingsofferings, auto-enrolment, flexible working or thelifetime allowance restrictions, the existing benefitlandscape is no longer fit for purpose.

To help look at how retirement savings maydevelop and the challenges facing HR andReward, we are delighted to welcome CharlesCotton, CIPD’s Public Policy and HR PracticeDevelopment Adviser - Performance and Reward.Charles directs the Institute’s performance andreward research agenda and will be sharing histhoughts on the wider benefit landscape and whatemployers and trustees need to consider.

Looking at the impact of changes on existingschemes and the future challenges for pensiontrustees will be Sarah Jeffrey-Gray, who hasrecently joined P Pension Trustees following thepurchase of Temple Trustees Ltd.

Seminar details:

1¼ hours of PMI CPD may be recorded for Pi seminars, based on your assessment of the seminar’s value to you

Venue: The UK Chamber of Shipping, 30 Park Street, London, SE1 9EQ

Timings: 8.45 a.m. arrival and breakfast9.15 a.m. - 10.20 a.m. seminar10.30 a.m. finish and refreshments

We look forward to seeing you and would begrateful if you could advise your availability bytelephoning Jennie McMurtry on 020 8879 6500or by e-mailing us at events@piconsulting.co.uk

Please do share this invitation with any colleaguesyou feel would benefit from attending.

Breakfast Seminar

Retirement planning in the 21st

Century

Pi Consulting2 Allington Close

Wimbledon Village London SW19 5AP

Tel: 020 8879 6500 Fax: 020 8879 6501

events@piconsulting.co.ukwww.piconsulting.co.uk

Thursday, 19th May 2016

Amanda BurdenPi Consulting

Retirement planning in the 21st Century

Breakfast Seminar

Agenda

0845 Arrival, registration and breakfast

0915 Welcome and opening comments Susan Smith, Pi Consulting

0925 An HR perspective Charles Cotton, CIPD

0955 A Trustee perspective Sarah Jeffrey-Gray, Pi Pension Trustees

1015 Open forum

1030 Finish and refreshments

Thursday 19th May 2016

UK Chamber of Shipping30 Park StreetLondonSE1 9EQ

Venue:

Thursday, 19th May 2016

©Pi Consulting 2016 The home of good pension scheme governance

0915 Opening comments - Susan Smith, Pi Consulting

0925 An HR perspective – Charles Cotton, CIPD

1000 A Trustee perspective – Sarah Jeffrey Gray, Pi Pension Trustees

1020 Open Forum

1030 Finish and refreshments

©Pi Consulting 2016 The home of good pension scheme governance

Independent

Independent

Carriage clock Smart phone

The HR perspective Retirement planning in the 21st Century

Charles CottonCIPD Performance and Reward Adviser

19 May 2016

Short history of pensions and HR

DB• Finance’s role• HR’s role

• Recruitment and selection; retirement

DC• Finance’s role• HR’s role

• Scheme selection

Managing the people risks

• Employees don’t value pensions

Perc

eive

d va

lue

Time

Traditional Viewof Pension as areward

Employee'spercieved valueof pension

Managing people risks

Employees:

• joining the organisation

• staying with the organisation

• engaging with the organisation

• retiring from the organisation

Managing people risks

Pensions changes

• automatic enrolment

• annual and lifetime allowances

• state pension

Managing people risks

From pensions to long-term savings

• pensions freedom and choice

• lifetime ISAs

Freedom and choice risks…..

• employee inertia - general lack of financial awareness and understanding of their options plus behavioural biases

• consequences if employees act - they may not be fully aware of the negatives, such as:

• running out of money before they retire• becoming a higher-rate tax payer• reducing their AA from £40,000 to £10,000

• pension scams• fund management strategy still based on annuity

purchase• employees assume that their employer has selected

a good solution

….. and consequences

• employee engagement• retirement becomes a potential performance, health

or legal issue• the pension becomes remote from the business

strategy• it doesn’t support culture, values or principles the

company needs• brand image (recruitment/retention of employees and

clients)

An integrated and aligned response

• employee wellbeing – lower employee absenteeism and turnover and higher performance

• financial wellbeing – stress, concentration, diet and illness

• pay rates• financial benefits (risk-benefits) • non-financial benefits (eg recognition, flexible

working)• how rewards are allocated• savings and loans• financial education (information, advice and

guidance)• communications (across a diverse, mobile and

demanding workforce)

©Pi Consulting 2016 The home of good pension scheme governance

Common influences

Practical issues and experience

Member engagement and communication

©Pi Consulting 2016 The home of good pension scheme governance

ADMINISTRATIVEEASE

COSTS OFADMINISTRATION

ACCESSIBLECOMMUNICATION

FOR MEMBERS

EMPLOYERCULTURE

AND OBJECTIVES

INTERPLAY WITHAUTOMATICENROLMENT

©Pi Consulting 2016 The home of good pension scheme governance

Investment and member inertia

Default funds – moving away from life-styling

Savings rather than pensions vehicle?

©Pi Consulting 2016 The home of good pension scheme governance

Archaeological dig for any past promises made about future pension provision

Mixed experience of some provider platforms

Balance between employer and member objectives and control

©Pi Consulting 2016 The home of good pension scheme governance

Trustees have no duty to give advice but do have a duty to provide information

Are members able to make an informed choice?

Do members actually understand their choices?

Member communication vital

©Pi Consulting 2016 The home of good pension scheme governance

Demographics of membership

texts or office-based workforce

using email/online access/apps –

catering for different age groups

Presentations Papers

©Pi Consulting 2016 The home of good pension scheme governance

Regularity of communication

Have Trustees asked the membership what information they would like?

©Pi Consulting 2016 The home of good pension scheme governance

©Pi Consulting 2016 The home of good pension scheme governance

©Pi Consulting 2016 The home of good pension scheme governance

Recruitment of new MNT candidates

Continuing raising of bar for DC

Broader retirement and savings planning focus

More taxation changes on the horizon spared in the last budget – “not the right time”

©Pi Consulting 2016 The home of good pension scheme governance

Future seminar dates for your diary:

Thursday, 8 September 2016Thursday, 24 November 2016Thursday, 23 February 2017

If you have any suggestions for future seminar topics, please let us know.

©Pi Consulting 2016 The home of good pension scheme governance

We would welcome your feedback on: Subject Content Format of session Time Venue Arrangements

Please email us at feedback@piconsulting.co.ukor via the seminar page on our website www.piconsulting.co.uk