To read the full version of this content please select one of the options below:

Defined contribution pensions: dealing with the reluctant investor

Alistair Byrne (University of Edinburgh Business School, Edinburgh, UK)
Debbie Harrison (Cass Business School, Pensions Institute London, UK)
David Blake (Cass Business School, Pensions Institute London, UK)

Journal of Financial Regulation and Compliance

ISSN: 1358-1988

Article publication date: 25 July 2008

Abstract

Purpose

The purpose of this paper is to provide an overview of key issues in the governance of defined contribution pension schemes, with a focus on investment matters, and to recommend best practices.

Design/methodology/approach

The paper draws on the results of an online survey of the opinions of pensions professionals and on interviews with pensions professionals.

Findings

The paper finds that many employers and pension scheme trustees are reluctant to take an active role in pension scheme design and to provide support and guidance to members for fear of legal liability. Scope exists for regulators and legislators to create “safe harbour” provisions that will encourage employers and trustees to become more active in supporting members.

Practical implications

The paper makes a number of suggestions for best practice in the design and governance of defined contribution pension schemes, for example, in terms of the fund choice that should be offered.

Originality/value

The paper provides the first comprehensive review of investment issues for UK defined contribution pension plans.

Keywords

Citation

Byrne, A., Harrison, D. and Blake, D. (2008), "Defined contribution pensions: dealing with the reluctant investor", Journal of Financial Regulation and Compliance, Vol. 16 No. 3, pp. 206-219. https://doi.org/10.1108/13581980810888822

Publisher

:

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited