You may be thinking that “the chances of a crisis impacting our pension scheme are very low” and while that might be true, the risk always exists. Over the past three years UK pension schemes have had to navigate a series of major unforeseen incidents, including COVID-19, conflict, rising inflation and interest rates, the liability-driven investment (LDI) crisis and cyber security threats. So, if you think you could never be the victim of a crisis, think again.
Why prevention is better than cure
Having worked closely with various pension schemes over the years, as Member Experience specialists we understand how to best support and communicate with members, especially when it involves an unexpected event that could impact members’ personal information or confidence in the scheme.
Primarily, what we’ve learnt is that members tend to be more receptive and willing to accept the unexpected if they feel like they can trust the source who is providing them with that information. If, as a Trustee Board, you start communicating with your members out of the blue, only when there’s a major change or a crisis, there is a danger your members will react negatively and dismiss what you have to say to them. They may even think it’s a scam if it’s out of the blue.
Such a situation could not only hinder the trust members may have in the governance of their pension scheme, but it could also lead to some unhappy members sharing and raising their concerns and dissatisfaction with the Trustee Board on social media or in the press.
But all of this can be prevented. It is possible to reduce the negative impact an unexpected event can have on the reputation of the pension scheme, its governance and the overall member experience.
How to prepare for the unknown
Plan, plan, plan. Effective planning can equip you with the confidence of managing a crisis effectively and successfully.
Here are the top five things we consider when developing a crisis communication plan:
Embark, WTW’s digital solution, can help you to connect and communicate with your members in the moments that matter in an instant. It can help make it easy for members to find all the information about the scheme conveniently online or through a web app experience. If your scheme hasn’t yet got a website, then consider one now ahead of a crisis.
Using insights gained from working closely with various pension scheme Trustee Boards on crisis situations, we’ve developed a ‘One Step Ahead’ digital solution to not only help Trustee Boards to be equipped and ready to communicate to members in the event of a crisis, but to also raise members’ understanding of potential risks via a dedicated member website with extensive resources that educate members around cybercrime, pension scams, identity theft, and fraud.
We’d argue that doing nothing to support member education in this area is no longer an option with the increase in cyber-threats.
In conclusion, Trustee Boards not only have a fiduciary duty to act in the best interests of scheme members but also a moral duty. And as part of fulfilling this duty, it is key to plan and prepare your scheme to effectively manage any crisis that may harm its reputation or the relationship of trust with its members.
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