Independent data consultancy ITM switched from a group personal pension (GPP) to a Cushon master trust in January 2021.
Hilary Chapman, head of HR at ITM, says: “We previously had a GPP and were looking to move from our previous pension provider because of issues with administration and lack of member engagement.
“Theoretically a GPP, as a group of individual plans, should be easier to administer, but we were constantly having issues with contribution reconciliations and member administration in general; it all felt too clunky and time consuming."
Chapman explains that, since making the move, ITM has found administration to be easier. Not just this, but the new scheme provides more flexibility in terms of member detail changes.
"I think the ease of use is down to the focus on tech as a delivery mechanism; there is less manual intervention, which is what we wanted,” she adds.
Using a tech-enabled service means that employees' pensions can fit better alongside other aspects of their lives, where mobile apps are the norm. Providing this quick and easy access also means that fewer queries come through to HR, freeing up time and resources.
There has also been an uptick in enthusiasm among staff, Chapman adds: “Getting employees engaged with pensions is challenging, but this has really improved and it’s to do with the app, the fact that they are now in a net-zero pension so they feel like they’re not only saving for retirement but also helping tackle climate change, and the voting feature which makes our employees feel like they can make their pension a force for good.”
In addition, moving to a master trust managed by an independent board of trustees has made Chapman feel that the regulatory burden has been lifted from ITM, without sacrificing the knowledge that the best interests of employees are being looked after.
It also makes sense to ITM to be able to offer ISAs and other financial products on the same platform, adds Chapman.
“Employees can see all their savings in one place: short-term and long-term, and this gives context to the pension," she explains.
"The problem with pensions on their own, especially for younger employees, is that it can feel like there’s no benefit at the moment: retirement is too far ahead. Once you add in shorter term and accessible solutions, they see their whole financial life journey, not just the end destination.”
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