Benchmarking & Market Reviews

Benchmarking

We are on hand to help clients benchmark their current service partners, this is made possible by our in-depth knowledge of the pensions market. Our research on Employee Benefit Consultancies, administration specialists, fiduciary managers and independent trustees is unrivalled. Monitoring these relationships forms a fundamental part of trustees’ responsibilities. Our expertise will support trustees in demonstrating this and offer resolution for when issues are found

Case Study – Large scheme

KGC was appointed to assist the Trustees in carrying out appropriate due diligence of its administration provider. The Trustees were happy with the administrator however recent changes to the Scheme caused an impact on service delivery and fees. The Trustees needed to gauge whether the Scheme was receiving a value for money service and whether the services delivered were best practice.

The employer was particularly paternalistic and its culture and values extended to the Scheme. One aspect of the paternalism led to an unusual service delivery model, with the provider carrying out pure administration only and ancillary services provided by the employer. Prior to undertaking a Benchmarking Exercise the Trustees wished to understand what a modern best practice service delivery model looked like. We produced a recommended model capable of delivering the service quality and best practice the Scheme members expected. The benchmarking exercise was based on this model as well as a newly defined scope of services.

Our Benchmarking Exercises can help clients renegotiate their contract and for the current provider to sharpen or reshape its service. We often find in longer term relationships, the original service agreement and scope of service does not reflect the needs of today’s pension schemes.

Wherever possible KGC looks to help trustees and incumbent providers come to an agreement and build a stronger relationship for the future. Where this is not possible we are on hand to assist our clients in finding a suitable new service provider.

Market Review

There are many reasons why a new service provider or professional adviser will be required. Our extensive research process and engagement with the industry means we have the expertise to manage these selections. We aim to match the right long term partner, for now and into the future.

Case Study – Charity Scheme

We were appointed to help select a new full service provider for this charity’s pension scheme. Like many charities, they have to be cognisant of the costs of running the pension arrangement and its potential drain on the charity’s money. Cost was an important factor within the review but value for money was vital. Potential providers also needed to demonstrate their understanding of the unique requirements of having a charity as a client, the current arrangements in place and the desire for de-risking the scheme in future.

KGC agreed a shortlist of suitable providers capable of delivering a high quality/good value service and whose culture was similar to that of the scheme. An Invitation to Tender was issued and responses were interrogated. We produced a detailed Evaluation Document and reported back to the Scheme with our analysis and recommendations. The shortlist firms were visited by both the Trustees’ representatives and KGC, where the proposed teams were put through their paces. Three firms were invited to present to the full Trustee Board where they decided on a preferred provider firm.

Testimonial
‘The investment in using KGC to help the Trustees through this market review was money well spent. They were professional, efficient and took the burden away from a very busy Trustee board. Yes we were involved but we were confident in the work KGC had undertaken, their research activities meant we could rely upon their suggested shortlist to meet our needs. Their evaluation documentation and reporting was second to none. Like many Trustee boards we have a variety of skill sets, knowledge and experience of different providers, but KGC opened our eyes to the market potential and found us the most suitable solution for us and our members’.
Mira Mohideen – Head of Pensions, mencap