Management Consulting
Aon
Full Credential Description
Misys, a financial services software provider operating in 130 countries, faced significant challenges with its pension schemes following a series of acquisitions and changes in pensions legislation. The existing pension offering was fragmented, financially unsustainable, and outdated, with annual fees exceeding £430,000. The schemes lacked flexibility, had limited control over costs, and were burdened by a six-year-old communications booklet that risked employees making decisions based on incorrect information. To address these issues, Misys implemented a new Group Personal Pension (GPP) plan that streamlined their pension offerings and improved employee engagement. The solution included targeted communications aimed at current employees rather than the majority of ex-employees, ensuring that the information was relevant and actionable. Key features of the new GPP included automated systems for compliance with auto-enrolment, a new Default Investment Option (DIO) aligned with pension flexibilities, and a Core Fund range that provided members with targeted investment choices. The results of this overhaul were significant. Ongoing fees were reduced from £430,000 per annum to just £50,000, while employee satisfaction with benefits increased from 62% to 75% in the 2015 UK Employee Satisfaction Survey. The new GPP also facilitated a seamless transition for deferred members into a trustees buyout at the same annual management charge (AMC) as the GPP, granting them access to the same online tools and retirement flexibilities. Within the first six months of the new scheme, 25% of employees logged in quarterly to manage their pensions, a substantial increase from the 5% engagement rate under the old scheme. This transformation not only achieved compliance and cost control but also enhanced the overall employee experience, demonstrating a successful alignment of business and employee needs.