Mercer launches defined contribution pensions governance tool

Mercer has launched a new tool to help trustees and governance committees improve the performance of their defined contribution (DC) pension schemes.

The tool will help reduce the running costs and ensure schemes meet the needs of members, while also preparing them for new guidance expected from The Pensions Regulator.

The Mercer Optimiser Tool (MOT) addresses 10 key areas that trustees and governance committees for DC schemes should review including: setting strategic objectives; governance; member profiling and communication; investment strategy and fund choices.

Brian Henderson, principal in Mercer’s DC consulting team, said: “More legislation on improving the governance of DC schemes is likely following the Investment Governance Group’s consultation, and this will have a profound impact on how DC schemes are run.

†“There is enthusiasm amongst employers for ensuring their plans are properly managed from an operational perspective, but they should first put in place a comprehensive and robust governance structure for this.”

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