Standard Life and the Pensions Management Institute (PMI) have formed a research partnership, PMI/Standard Life DC Pulse, looking at methods of providing adequate retirement savings in defined contribution (DC).

The partnership was made as more final salary schemes have announced they are closing down.

"The PMI has been looking to work with a company that is leading the way in providing defined contribution work-based pension solutions for both trust and contract based environments," commented Vince Linnane, chief executive at the PMI. "We are delighted to be partnering with Standard Life and the research with PMI members will be instrumental in helping to shape both organisations' pensions strategies during the next decade."

Standard Life's corporate distribution director, Alan Reid, said the partnership presents them with the opportunity to shape this market, and help them to determine their thinking and strategy in this growing area.

The initial research project will be carried out in the summer, and profiled at the PMI's autumn conference in September.

It will look at whether current DC provision is fit for purpose following the implementation of the National Employee Savings Trust (NEST); whether companies can cope with scalability issues; how far companies have identified issues around flexible retirement; offering future-proofing to DC schemes; diversified growth options to reduce volatility; and what effective employee engagement really looks like.

"Whilst there is an awful lot of dust still to settle from the displacement of the defined benefit pension schemes that have been the mainstay of the UK pension scene for over 25 years, it is vital that work commences now on what the new pensions environment will look like for the next 25. Clearly, DC schemes - in some form or other - look like being the new norm for the industry. We have to make them work, as effectively and as securely as possible, to safeguard people's retirement income. This vital research project will feed into that and help allay fears about DC pensions," Linnane concluded.

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