Chartism and Comms in DB Pensions

“When the charts are this bad – stop drawing them and start trying to change them.”  T. Bell 2024

On DB pensions: “Dull is not the same as unimportant”.  T. Bell 2024

He now has a blog “Charting the Course”.  Perhaps he would like some charts and stories to help bring the messages home.

Pensions are for most people, Torsten recognises, on a par with a trip to the gym – a good idea to avoid.  What should DB members do to improve performance?  They should ask a single “light the blue touch paper and retire immediately” question of trustees and their (former) employer.  Very impactful.

“Trustees.  Have your actuaries provided a TAS300V2.1 P5 paper yet?”

Data fireworks.  What the maths and governance required will show trustees and members is that:

– Run-on beats buyout in risk-benefit analyses.
– Agreement to exercise discretion is needed with the sponsor and should be forthcoming.

And when Government realises run-on wins it can provide incentives cost-free to ensure more of £1 trillion plus backing DB pension schemes is invested in the UK.  A big win for a little member engagement.  We’re all chartists now.  The charts for Torsten may ring bells - attached.

Government should also ask the life insurers with the £350 billion in pensions to trade more UK gilt and productive asset investment for letting insurers continue to market for free Government regulations as providing absolute confidence and access to the FSCS completely secure safety net as primary selling features.

And trustees and sponsors on the treadmill in the Torsten pension gym, take inspiration from the little known pension stories of the Gruffalo’s grandparents and Jemima Puddleduck.


The Gruffalo’s grandparents got the pension message from little mouse 
 
Little mouse has a DB pension and is on a journey to an inflation protected retirement income. 

On the way little mouse meets a snake, an owl and a fox proposing buyout if little mouse gives them all the money now and never exercises discretion to have more. 

Little mouse thanks them but can’t stop because of a meeting with the Gruffalo’s grandparents – their favourite recipe is a “class action” against the risk transfer industry. 

Little mouse is surprised to find the Gruffalo has grandparents living in a big, messy White Hall full of red tape.  They tended to be more class than action. But when little mouse said, “I have lots of scheme member friends in your electorate,” bells started ringing and they quickly tidied up. 

And little mouse kept the money and Ran On 4 Good, investing widely in their wood.  So mice, snakes, owls and the Gruffalo family all lived happily ever after.  Only fox was a little upset. 


Jemima Puddleduck – A retelling

A month ago:

Jemima here.  Just wanted to share I started sitting on 9 DB nest eggs today!  Has been top secret!!  My farmyard friends were so difficult.  All those rules and restrictions and taking eggs away.  So I made off on my own and met such a lovely gentleman with long whiskers and a bushy tail.  He is ever so clever specialising in risk transfer with the Nest Egg Security Alliance.  I think he said they provide reinsurance.  Anyway, he is really helpful about keeping eggs warm as he has a shed full of comfy feathers.  He’s asked me to bring onions and parsnips and the farmer’s purse to get things moving.  He said he’ll look after everything after that.

Kip Bell:  I’m the sheepdog on the farm where Jemima lives.  When we saw her post my good foxhound friends led a search party.  Pleased to say Jemima is fine and the foxy gentleman has disappeared.  We all agreed to Run On 4 Good.  Farmer says there’s some wings to be clipped tomorrow.

Today:

Jemima: I’m delighted to say I will have a healthy clutch of ducklings soon!  Run-on Beats Run Away.

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Charts and stories: add interest and importance to DB pensions.  And DB pensions can add to UK economic growth – not bad.