Yorkshire Cancer Research’s existing workplace pension scheme was subject to relatively high charges, impacting its overall value for members. While investment performance was acceptable, there were opportunities to enhance potential returns for employees.

Salary sacrifice was available on an optional basis, resulting in limited employee participation and reducing the overall effectiveness of the arrangement.

Yorkshire Cancer Research was also keen to strengthen financial education around the workplace pension scheme. They wanted employees to better understand and appreciate the value of their pension benefits, ultimately supporting improved long-term outcomes.

They were committed to partnering with a pension provider whose values aligned with their own. And it was equally important that employees had a straightforward and accessible route to transfer any previous pension savings into the new arrangement, should they wish to do so.

We conducted a comprehensive whole-of-market review, assessing not only charges but also the quality of the investment solution, ESG credentials, and the overall employee proposition.

Our investment strategy was tailored to reflect the demographic profile of the workforce, carefully balancing risk appetite with the objective of improving long-term growth potential. This included reviewing the structure of the default investment fund to ensure it was appropriate for members at different career stages.

To improve participation and maximise efficiency, we introduced salary sacrifice on an assumed consent basis. This approach meant all eligible employees were automatically enrolled into the arrangement, significantly increasing uptake while maintaining compliance and transparency.

We also ensured that any selected provider would deliver a robust employee communication campaign, including clear support for members who wished to transfer previous pension savings into the new scheme.

Following the review, we secured a new workplace pension arrangement with Royal London.

• Reduced Charges: The Annual Management Charge (AMC) for members invested in the default fund was reduced by more than 50%, delivering significantly improved value.
• Enhanced Investment Strategy: A new default investment fund was implemented, adopting a slightly higher-risk approach during the growth phase to improve return potential, while retaining a structured derisking strategy as members approach retirement.
• Full Salary Sacrifice Uptake: The move to assumed consent salary sacrifice resulted in 100% uptake among eligible employees. Additionally, 50% of the employer National Insurance savings were reinvested into employees’ pension contributions, with the remainder used to offset scheme operating costs. Employees also saw an increase in their take-home-pay.
• Values Alignment: Royal London’s not-for-profit status closely aligned with the values of Yorkshire Cancer Research, strengthening the cultural fit of the partnership.
• Comprehensive Communication Campaign: A detailed engagement programme was delivered, including presentations and one-to-one guidance sessions. Royal London also implemented a “direct offer” campaign, enabling employees who wished to transfer previous pension savings to do so seamlessly via a simple online, one-click process.

The outcome was excellent employee engagement, strong uptake, and highly positive feedback, alongside a more cost-effective and strategically aligned pension arrangement.