Decision-support tools must be fully embedded in the financial management of pension schemes if trustees are to gain a better understanding of advice and take real control of their funding agendas. Lucas Vermeulen, Managing Director at Ortec Finance UK.

Lucas Vermeulen, Managing Director at Ortec Finance UK, commented: “With The Pensions Regulator urging schemes to hold their advisers to account, it is more important than ever that all advice taken is adequately analysed and the decisions being made are the right ones for current and future beneficiaries. However decision making is complex, particularly without a proper understanding of why an aspect of advice is being given.

“Having appropriate decision-support technology in place such as modeling and strategy tools, that measure results and road test scenarios showing the potential outcomes of strategies will put trustees on a level playing field with their advisors, allowing them to challenge them more appropriately.

In addition to ensuring an even higher level of governance, a trustee board that understands the risk/return trade-offs of policy alternatives is able to observe them from specific stakeholder perspectives.

This ultimately means greater certainty that when advice is taken it can be understood, implemented and monitored – which can only be in the best interests of all parties involved.”