With the backdrop of a complicated multi-employer DB scheme now closed to future accrual that had created a history of HR and management challenges, our state sector client was under pressure to deliver a solution that could rebuild trust, turnaround the negative association with pensions amongst members and reduce the risks of potential industrial unrest.

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CASESTUDY

2. TheClientChallenge
Withthebackdropofacomplicatedmulti-employerDBschemenowclosedtofutureaccrual
thathadcreatedahistoryofHRandmanagementchallenges,ourstatesectorclientwas
underpressuretodeliverasolutionthatcouldrebuildtrust,turnaroundthenegative
associationwithpensionsamongstmembersandreducetherisksofpotential
industrialunrest.
TheyrequiredaDCschemethatemployeesandunionscouldengagepositivelywithand
onethatwoulddeliveranoutcomeonaparwiththebestinthemarketplace.onethatwoulddeliveranoutcomeonaparwiththebestinthemarketplace.
OurSolution
Toensureamember-focusedsolutionthatwoulddeliverthebestoutcomeforallparties,we
firstengagedwitheachstakeholdergroup.Wemetwithunionstolistentothekeyelements
oftheirpreferredpensionsolutionandalsoanalysedthedifferentgroupsofmemberdata
tounderstandtheirdifferingneedsandexpectations.
Combiningourfullrangeofadvisorycapabilitieswithourmarketleadingexpertiseindata
analytics,independentactiveassetallocationandfundmanagement,wetransitionedthe
schemefrom asinglefund,singlemanagerinvestmentfundtoacustom designedsolutionschemefrom asinglefund,singlemanagerinvestmentfundtoacustom designedsolution
thatgaveaccesstoabetterchoiceoffundsatlowercost.Wecombinedpassiveelements
withactivelymanagedelements,andanindependentactiveassetallocationoverlay,with
thesoletargetofaddingvaluetomemberoutcomes.Thishighlyinnovativeproductwas
deliveredbyabespoketeam ofspecialistsinanextremelyefficientopeninvestmentplatform.
Oursolutionfacilitatedactivemanagementatverylowcostandwithactivemonitoringat
everylevelweensuredbothbetterassetmanagementandbettergovernance.
TheResults
Thecumulativeimpactoflowermanagementcostsovertimemeansthatanaveragemember
willseea10%improvementintheiraccumulatedsavingsatretirement,inadditiontothe
benefitofactiveassetallocationandhavingabetterchoiceoffundsavailable.
Withstrongmemberparticipation,extremelypositivefeedbackfromemployeesand,most
critically,thebackingoftheirunions,ourclientnowenjoysthebenefitsofabest-in-class,
flexible,clientbrandedsolution,overseenbyawell-governedboardoftrustees,thathas
removedmuchoftheuncertaintyandlegacynegativitypreviouslyassociatedwithpensions,removedmuchoftheuncertaintyandlegacynegativitypreviouslyassociatedwithpensions,
andisalignedwithboththeemployer’sfuturebusinessstrategyandemployeeinterests.
Whattheclientsaid:
“Acuvesthascreatedahighlyinnovativeproductthatdeliversa30%savingontheoverallcostsof
runningthescheme,plusthepeaceofmindofactivemanagementateverylevel.
Theirpositionofindependenceandwillingnesstomeaningfullyengagewithandlistentoall
stakeholdersduringthedesignphasewascriticaltosecuringmemberbuy-inandultimatelythe
successfulre-launchofthescheme”.
Stateownedenterpriseachieves30%
costsavingwithinnovativenew
pensionscheme.

3. SOMEOFOURCLIENTS
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Dublin2
Tel:016344510
info@acuvest.ie
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