Mapping out a simpler, sustainable future for a Building Society DB scheme
Leek Building Society, an independent mutual building society putting its members and community first for over 160 years.
The challenge
It required support in outsourcing the governance of its DB pension scheme, prompted in part by the retirement of a trustee and by a desire to reduce the amount of management time committed to running the scheme. Furthermore, the makeup of the scheme’s hedging assets needed attention and overall administration required improvement.
What we did
Thanks to a significant track record of working with similar scheme scenarios, the team was able to manage a complex handover from the incumbent provider efficiently and pragmatically. We then worked with the client to implement a long-term strategic plan with clear and tangible milestones.
The award-winning Enplan solution:
- Incorporated a professional trustee – Entrust – for enhanced, independent governance
- Consolidated the operation of the pension scheme with others to benefit from economies of scale
- Set a clear strategic plan and implemented it, allowing hedging levels to be corrected and minimal time negotiating the triennial actuarial valuation
- Limited client management time to top level oversight briefings
The impact for the Scheme
While Entrust provides the governance and secretarial support, the Isio team looks after all the key pensions services – administration, actuarial and investment. The approach has resulted in the operational efficiencies and cost-savings that come with scheme consolidation, all delivered with the market-leading Isio client counsel, care and expertise.
This combination has afforded the Leek Building Society management team the confidence to map out the future of its scheme, whilst being reassured everything is on track.
Implementing Enplan has reduced management’s time spent on the DB scheme from 3 to 4 days a quarter to 1 to 2 days a year.
“With Entrust and Isio’s support, we’ve been able to reduce the time required on the closed pension scheme, which has increased management’s capacity to focus on strategic issues facing the Society.
Their pragmatic, down to earth and knowledgeable approach has fostered a strong relationship between Entrust, Isio and the Society, which has allowed transparent and productive conversations across all facets of the scheme management.
Running the pension scheme has become more straightforward as a result, and I am grateful to the support both Entrust and Isio have provided me since I joined the Society over 3 years ago.”
Ed Wilson