The Future of Pensions Act (Wtp) presents pension providers and administrators with a strategic choice: do we transform the organisation ‘only’ to comply with the requirements of the Wtp (‘comply only’) or do we also want to differentiate ourselves from others in the pension sector with a view to making the pension market more transparent and individual (‘comply and differentiate’)?
Strategic approach
As a pension provider and pension administrator, you would do well to answer this strategic question at an early stage by providing a concrete elaboration of your future target group (‘who’), services (‘what’) and how you want to organise your services (‘how’) through processes, systems and your employees (Target Operating Model). By providing a (high-level) answer to these strategic questions:
- is your New Pension Contract (NPC) project organisation able to create a transition plan that is not open-ended;
- helps you motivate the NPC project organisation through a long transformation process by providing a clear ‘spot on the horizon’ to work towards;
- inspires your current and potentially new employees to be or become part of your future organisation.
The challenge in developing your strategic question is not to get ‘bogged down’ in the details right away, but to first provide a high-level interpretation on the following components:
- ‘Who’: do you want to continue to serve only your current participants and employers in the future or do you also want to be able to serve other participants and employers?
- ‘What’: based on the ‘who’, do you want to be able to implement the solidarity contribution scheme (SPR) and/or the flexible contribution scheme (FPR) as a pension product, and what suitable interaction with participants and employers (including the design of choice guidance) for this?
- ‘How’: based on the ‘who’ and the ‘what’, is a digital customer service or hybrid customer service more suitableand which organisational components will you do yourself (‘make’), buy in the market (‘buy’) or outsource (‘ally’)?
Target Operating Model
Based on the high-level answers, the required future organisational transformation can be worked out in more detail in a Target Operating Model that describes the connection between organisational processes, systems and employee competences.
Our expertise
Based on our knowledge of the pensions market, the Future of Pensions Act and operating model expertise, PwC can efficiently support you in developing your strategic approach and into more detail in a Target Operating Model.We use specific PwC frameworks and methodologies in this process. Furthermore, we can facilitate the creation process in which we will challenge you - from various disciplines - on the choices you have to make.
If you would like a more detailed explanation of our support, we will be happy to discuss this with you.
