Small Scheme of the Year
Winner: The Independent Schools' Pension Scheme
A Winning Formula!
The Independent Schools’ Pension Scheme (ISPS) was voted ‘Small Scheme of the Year’ at the recent Professional Pensions Scheme Awards.
What is it and what makes it a winner?
ISPS is a pension scheme for support staff at independent schools which aims to provide similar benefits to the Teachers’ Pension Scheme, at a comparable cost. The Scheme was developed in consultation with the Independent Schools’ Bursars Association and is open to any school,
not-for-profit organisation or charity affiliated to the Independent Schools’ Council.
Winning qualities:
• Managed by The Pensions Trust which uses its size and expertise to continually improve service standards and, where possible, reduce costs.
- 99% of cases completed within ten working days.
- Per member costs reduced for seven years in succession.
- New benefit options to suit all budgets introduced in 2006.
• Overseen by the ISPS Pensions Committee which represents the employers and members who are in the Scheme.
Who’s in ISPS?
• A total of 41 employers – up by five from 2007.
• Nearly 2,800 Scheme members – an 11.0% increase over the past year.
What support do employers get?
First of all, there’s the comfort that comes from knowing that costs are fixed, no matter how many member enquiries there are. In addition, every employer has access to two dedicated Account Managers who know the Scheme and specific employer requirements. The Pensions Trust also works hard to promote ISPS and encourage employees to join, with membership drives and presentations.
And what about the members?
Once an employee has signed up they have access to a range of communications material designed to educate as well as inform. These are available in print and electronic versions, with alternatives for members with special requirements. ISPS also has a dedicated Administration Team at The Pensions Trust who are always on hand to help with member enquiries. Finally, the Trust’s Sales Consultants visit employer sites regularly and are available for one-to-one pension clinics.
What else does The Pensions Trust do for ISPS?
The Trust is run by a Trustee Board which is responsible for the governance of its schemes – this covers all aspects of management including investment.
The Trust’s key responsibility when investing members’ money is to achieve a good level of return over the long-term, in order to provide members’ pensions, without taking undue risk. This is best achieved by investing in a wide range of assets in markets around the world and the Trust has engaged a number of asset management firms to do this on its behalf. These managers are at liberty to hold any stocks they feel fit within their remit and, as a result, the Trust has holdings in many major companies.
The Pensions Trust is mindful that the activities of some companies not only put poor people and the environment at risk, but also represent a financial risk to pension funds. Accordingly, the Trust is committed to adopting best practice guidelines issued by a number of industry bodies. The Trust has a detailed voting and engagement policy which it issues to its appointed asset managers and delegates this responsibility. All The Pensions Trust’s asset managers are required to vote at company AGMs and are expected to engage with boards of directors to improve how firms are run and their social and environmental impact.
The Trust’s Investment Committee may also write to its asset managers on certain matters such as climate change or political donations to express its views. In addition, the Trust is currently working with its appointed asset managers to develop a ‘comply or explain’ reporting standard.