Large schemes offered twice the admin meetings small schemes receive – KGC

Large pension schemes receive more than double the meetings small schemes are provided with from administration companies, research from KGC Associates has revealed.

The consulting firm’s seventh administration survey found that almost 80 per cent of schemes with more than 5,000 members receive four trustee meetings per annum as standard from their administration provider, as part of their core fees. In contrast, half of schemes with fewer than 200 members received one trustee meeting as standard, with around 5 per cent receiving four trustee meetings as standard.

In addition, schemes in excess of 2,000 lives received two admin-only meetings as standard within core fees per annum by administration providers, while schemes with fewer than 1,000 lives only received one admin meeting per annum as standard.

KGC’s report author, Hayley Mudge, commented: “Providers are more than willing to talk through administration with trustees whenever they get the opportunity. Trustees should use the administration and trustee meetings to constructively engage with their administrators and to request better reporting. Whilst the survey looks at outsourced administration, this applies to all administration models. Administrators shouldn't be left to police themselves, and they do not want to be.”

The report’s findings of differences between large and small schemes echoes its findings from last year, in which KGC’s sixth annual administration survey found small schemes face the widest difference in administration fees, with the highest charge four and a half times the cheapest fee available.

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