Value for money in pensions can feel overwhelming, but it does not have to, as Muntazir Hadadi, head of pensions at First Bus, explains: “The way I look at it, value for money is all about the members. What do you really want as a member? You want to make sure that people are looking after your money properly, that you’re not paying high charges, and that someone will pick up the phone quickly when you need help.”
When Hadadi and his colleagues reviewed First Bus’ pension arrangements in 2023, they considered a range of prospective providers. They scrutinised investment returns and charges, together with their advisers; but they felt that value for money encompassed more than pure investment returns. In a crowded market, they were also keen to understand what distinguished one provider from another; and what extra features First Bus’ 18,000 employees might be able to enjoy.
Customer service was also at the top of mind. To get under the surface, Hadadi and his colleagues went to visit providers’ call centres. They were keen to witness that members could quickly get through to someone when they needed help, and that call centre workers would explain pensions issues clearly, without any jargon.
After the review, Hadadi and his team decided to stick with their provider. “It’s useful to perform a review, once in a while; it spurred the incumbent into doing more for us,” he says.
He encourages other employers to conduct regular reviews to make sure they’re getting the best possible bang for their buck.
The review had other benefits. It turned out that First Bus was entitled to a set number of days with their provider’s communication specialists every year; it had a stash of these days, accumulated over the course of three years.
So, Hadadi invited them to the pensions team’s bus depot tour, where people come to their respective staff canteens to ask questions about their pensions. “They supported us for 36 site visits that year and were great,” says Hadadi.
When budgets are tight, it is worth working with a provider for more services, he concludes.
