Head of Pensions, Skanska: How to ensure your pension plan is 'roadworthy'

Mohsin Harhara, Head of Pensions at Skanska UK, is a staunch advocate for employers to play their part in designing effective defined contribution (DC) pension plans that work for employees and the business alike. The best part? Improvements are often simple to implement while coming at little to no cost…

Why is it so important for employers to regularly review their DC pension schemes?

Employers often overlook simple changes to their pension strategies that could increase the benefits that individuals receive without necessarily increasing the cost involved.

Just as you need to make sure your car is roadworthy every year, employers should ensure their pension plans are fit for purpose. There’s a duty of care. Employers invest in contributions for their employees, but are they making sure they are getting the best value for their money for this investment?

At a time of an acute cost-of-living crisis and financial market volatility, it’s concerning that some firms have not reviewed their pension offerings recently, and this is letting down their employees who are losing money in their pension pots as a result.

Optimal pension arrangements benefit employers as they are an important part of the reward offering and a powerful recruitment and retention tool.

Are there any pressing concerns you’d highlight?

In recent years, the defined contribution pension landscape has undergone significant changes, with member charges decreasing and enhancements to member provisions.

Consequently, firms must actively seek optimal value for their employees by ensuring competitive member charges and optimal pension plan performance.