Almost two thirds (63%) of DB Scheme Trustees believe there is a heightened need for schemes to increase their reliance on technology, and the efficiencies they can bring, according to research from Hymans Robertson. The fallout from Covid-19 has created a move to embrace technology with the findings almost double what they were in the same period last year, as Trustees embraced new working styles and patterns, according to the leading pensions and financial services consultancy, as it warns that all schemes must take advantage of all the digital tools available.

Trustees confidence of their scheme’s effectiveness has also seen a decline according to the research. All of the surveyed Trustees believe that there was room for improvement in how their scheme was run, compared to only 10% saying this the previous year.

Commenting on the findings Laura Andrikopoulos, Head of Governance Consulting, says:

“These findings highlight the need for robust annual effectiveness reviews with clear outcomes and action plans and the need to reflect on the learnings from key decisions and processes. An increasing number of schemes are incorporating scenario exercises into their annual training days. These can supplement the traditional effectiveness questionnaire approach. Such scenarios provide real-time tests of how boards react under pressure to emerging situations that require quick reactions.”

Explaining the importance of embracing technology, Laura continues:

“The effects of Covid have created a need for Trustees to change and embrace new ways of working and technology is at the heart of this. They must take advantage of the tools available to them, and really look to future proof their ways of working before it’s too late. Being confident to place greater emphasis on technology and incorporate its use into decision-making, recognising that we are increasingly living in a digital world, is vital. If Trustees fail to make this change, they will fall behind in their goals, leaving members to reap the cost and schemes will further decrease in effectiveness.”

Note to Editors: Examples of digital tools that increase schemes’ efficiency include Hymans’ 3DA online funding system and its Periskope risk management system which facilitates high quality governance conversation around risk and governance topics.