How a scheme engages and supports its members can directly impact administration efficiency, member outcomes, and even insurer pricing when approaching buy-in or buy-out.
As schemes mature, trustees and sponsors increasingly ask: Are we doing enough to support our members, and does their experience reflect the value we’ve worked hard to secure?
Why Member Experience Matters
Historically, DB schemes offered a limited, often transactional member journey: annual statements, occasional queries, and the eventual retirement process. In today’s world, where members expect timely, digital, and empathetic communication, this is no longer enough.
Improving member experience can:
• Reduce complaints and administrative friction
• Support better decision-making at key life events
• Improve data quality and streamline de-risking transactions
• Enhance the employer’s reputation
Increasingly, insurers place a premium on well-run schemes with engaged members when quoting for buy-ins and buy-outs. Schemes with poor administration or disengaged members may face delays, higher costs or struggle to secure insurer capacity in a competitive market.
Moving to Member-Centric Administration
One of the most effective ways to improve member experience is through modern, user-friendly online portals. Many schemes now offer 24/7 access to pension details, real-time quotations, and interactive retirement tools that allow members to model benefits and process transactions efficiently.
Cost-effective portals are now accessible even for smaller schemes. When members are more engaged, they are often more likely to explore options such as early retirement or transfer, which can help reduce the ultimate cost of buying-in which means these portals can often pay for themselves.
But technology isn’t the whole solution. Clear, timely, jargon-free communication remains essential, particularly when members face complex decisions like retirement or transfer options. Multi-channel support, i.e. phone, email, post and online portals helps schemes meet the diverse needs of their membership.
Some schemes are now going further, introducing proactive communications: nudges to encourage early retirement planning, reminders to update beneficiary details, and tailored information about pension options.
Member Experience and the Endgame
As schemes move closer to endgame, the quality of member data and administration processes becomes crucial during insurer due diligence.
A scheme with clean data, engaged members and low complaint levels is attractive to insurers because:
• There’s less risk of post-transaction issues
• Pricing can be more accurate, potentially lowering the premium
• Transitioning administration is smoother for both sides
Schemes that fail to invest in member experience may face additional scrutiny, higher costs or difficulties securing insurer capacity.
Running On: A Deliberate Choice
When a scheme is fully funded on a buy-out basis, choosing to run on should be a conscious, carefully considered decision. Trustees and sponsors must be confident that continuing is likely to benefit members.
Some of the reasons schemes may decide to run on include:
• Members could ultimately receive higher pensions if funding levels continue to improve.
• Opportunities to pay discretionary increases, particularly where existing pension increases are capped or not linked to inflation.
• Retaining control over the terms of retirement, such as pension increase exchanges or bridging pensions which may offer members more flexibility or better terms than those typically available through an insurer.
Trustees must weigh the risks of running on against the potential member benefits. Surplus management should also be handled carefully, balancing the interests of members and the sponsoring employer in line with scheme rules and regulatory guidance.
Delivering Value for Members
Focusing on member experience is closely aligned with the broader regulatory shift towards delivering value for members. While this has historically been a priority in defined contribution schemes, The Pensions Regulator is increasingly emphasising the importance of good governance, high-quality administration, and member support across DB schemes too.
Providing a good member experience demonstrates that trustees and sponsors are meeting their responsibilities — not just by securing the promised benefits, but by ensuring members can understand, access, and make the most of those benefits.
Supporting Financial Well-Being and Wider Savings
A member-focused scheme should also consider the broader financial well-being of its members. Many DB members also hold other savings, such as AVCs, DC pots or personal investments.
Trustees can support members by:
• Ensuring AVC arrangements remain competitive and offer appropriate investment choices
• Providing practical information about how members can manage AVCs alongside their DB benefits
• Offering financial education and guidance to help members understand their total retirement savings
• Signposting members to reliable sources of financial well-being support
Helping members make informed decisions about their whole retirement picture can strengthen trust in the scheme and improve outcomes.
Practical Steps for Trustees
Trustees looking to improve member experience can start by asking:
• Do members understand the communications we send them?
• Are our processes timely and member-friendly, especially at retirement?
• Is our administration partner delivering high-quality service and accessible digital tools?
• Are we proactive in supporting members or simply reacting to queries?
• Are our AVC arrangements competitive and well-communicated?
• If we are considering running on, are we clear on how members could benefit?
Simple feedback mechanisms, member surveys and engagement reviews can provide valuable insights into where improvements are needed.
Conclusion
As DB schemes approach their endgame, member experience is no longer just a peripheral issue — it’s a key driver of success. It shapes day-to-day interactions, influences buy-in pricing and transaction efficiency and supports wider member outcomes, including well-being and financial security.
By putting members at the heart of scheme operations, trustees and sponsors can deliver real value, improve decision-making, and set their schemes up for long-term success, whether that means running on, consolidating or securing benefits with an insurer.
Ultimately, a good member experience isn’t just desirable — it’s essential.
Ray Hughes, Director & Consulting Actuary – Hughes Price Walker