As pension trustees, we always focus on providing good outcomes for members. As the pensions world evolves from Defined Benefit (DB) structures to Defined Contribution (DC) and beyond, we increasingly see members with a mix of pension benefits. And with changes to the pension age, particularly the State Pension Age, members can now have benefits payable from various places.
During a working lifetime, there is a focus on steady and regular incomes to support budget planning, so why is it so complicated when pension scheme members come to retire?
Members are often encouraged to consolidate their Defined Contribution funds and use these combined funds to purchase a pension income through an annuity or drawdown funds as required, subject to their relevant tax position.
However, this is not always straightforward, nor is it always the best idea. In addition, any decisions regarding their DC funds must be considered alongside any DB benefits available.
Even as a Professional Trustee, I often feel a little helpless when it comes to individual retirement guidance because we don’t, and nor should we be expected to, know each member’s circumstances. However, maybe as Trustees, there is still something we can do to help members with their retirement planning…
Some DB schemes have a lesser-known power to pay a “bridging” pension. This is a pension paid for only a short period of time, say 3-7 years. This could enable our members to receive more income from one scheme for a short term while waiting for other pensions, such as the State Pension, to come into payment. This can help an individual member with their budget planning and smooth out their retirement journey.
Having identified the possibility, the first action is to check the Scheme Rules to see if there is an option for retiring members to take a bridging pension. This could appear as part of the early retirement rule, an “options on retirement” section, or a separate “flexible” retirement option.
Whatever the Scheme Rules allow, focused communication with members is always essential. We could update members as part of ongoing newsletters or as part of the retirement process, perhaps in warm-up letters sent as soon as such benefits could be paid or simply as part of the standard retirement pack.
If bridging/flexibility isn’t an option, then we can still make it clear to members that they don’t have to take other pensions (e.g., DC) for life. For example, they could deliberately draw down a DC pot over only a few years before their DB and State Pensions kick in.
We always remind members to seek quality financial advice. We can even consider offering members access to a trustee-vetted IFA who can advise them on their DB pensions. It is also worth reminding members to consider their partners when setting up their pensions, as most schemes offer flexibility on the amount of the dependant’s pension payable.
Whilst the above sounds complicated, it could lead to a better retirement for some members from an earlier date than they thought possible. As a proactive professional pension trustee, Pi Partnership can help ensure the best outcome for pension scheme members in a focused and cost-efficient manner. Contact Pi Partnership now at 020 8879 6500 or at enquiries@pipg.co.uk to learn more about how we can help your pension scheme.
Alternatively, click here to find out more about our trustee executive services.
Sarah Marshall is a Fellow of the Institute and Faculty of Actuaries who now focuses on providing professional trustee services. She is an Accredited Trustee through the Association of Professional Pension Trustees and is also a Council Member. Sarah now acts as Chair, Co- and Sole Trustee to several Defined Benefit and Contribution schemes. Her combination of technical knowledge and pragmatic approach adds value to trustee boards and specialist project work.
The role of the professional trustee is evolving as DB schemes move towards endgame, governance models change and technology plays a greater role. But as AI adoption accelerates, trustees must look beyond data and operational risks to consider its environmental impact — and whether ESG thinking needs to evolve alongside it.
Pension scheme data underpins everything from valuations and liabilities to member services and project delivery. But while member data quality receives significant attention, scheme data can be just as critical. This article explores the risks of digitalisation, the importance of accurate scheme data and why effective governance and trustee oversight are essential.
Pension administration is becoming increasingly complex, with greater connectivity between systems, suppliers, data, digital tools and member services. For trustee boards, this creates new governance challenges and oversight responsibilities. This article explores why administration and IT expertise are becoming essential skills around the trustee table.
Everyone has different needs, and we support this balance offering true flexibility in how our people manage their time and fully support part time working and a family friendly approach.
We believe in clear and transparent communication and create regular opportunities for internal communication. Our regular business updates and opportunities to input into the business ensures everyone feels part of the team and on the same page at Pi, ensuring our hybrid working model is effective regardless of where you are based.
Nurturing every Pi Person is important to us and we want to ensure everyone has the opportunity for continued professional development by providing the space to do this alongside client commitments. Everyone has an individual Personal Development Plan catered to them, whether they are on the start of their journey with Pi or those looking at ways to transition into the next stage of their careers.
Everyone has the opportunity for a regular development and progression review and everyone has ownership over their own development with input and guidance of senior member of the team where required.
We provide regular opportunities to share knowledge amongst our teams through Lunch Time Learn in sessions and actively encourage involvement and participation into this.
We are an open, friendly and supportive team who thrive in a flexible and autonomous environment. Our people are trusted to get on with things, adding value and individual contribution, whilst maintaining a good work life balance and ideally having fun along the way.
We want to ensure we cultivate our special culture and our focus is to maintain our exceptional engagement levels. We are proud to have been awarded the Sunday Times Best Place to Work for small businesses in 2023 and 2024, and also in 2025 after moving to the medium-sized business category.
Our employee ownership structure is central to our philosophy of making sure every Pi Person is part of our success story, contributing to how we run the business, and sharing in the profits. We know that being successful is not just down to numbers, it’s about our people who all contribute in their unique way to our success and creating a working environment where everyone has a voice.
Amanda is a Board Director of Pi Partnership Group and leads the development of Pi’s services. She works closely with clients, the Pi team and professional advisers to ensure all of Pi’s services meet the changing needs of the pension market and deliver clear value to Pi’s clients.
Amanda has over twenty-five years’ experience in the pensions industry and, as well as ensuring Pi’s services continue to meet the needs of our clients in a rapidly changing pension landscape, is also a member of Pi’s Executive Management Team. She provides specialist project management for clients on a range of services, including adviser selection and review, trustee board assessment and governance design.
As well as being a Fellow of the Pensions Management Institute (PMI) and Chair of the PMI London Group, Amanda holds PMI certificates in Pensions Automatic Enrolment and DC Governance, was a past Prince2 practitioner and is a Certified Risk Management Practitioner.
What do you most enjoy about your role: Successfully delivering complex projects and creating a happy team environment.
Interests outside work: Travel, theatre and as part of Abundance London helping create beautiful spaces in urban settings.
Top achievement to date: Competing in the 2005/06 Round the World Clipper race.
