Encouraging and Improving Member Engagement

A challenge facing employers and trustees is to get members and potential members take part fully in the company pension plan, especially when it comes to:

joining as early as possible
making the most of the employer contribution

Below are three specific examples of different approaches we have supported some of our clients in taking to encourage members to do each of the above.

Example 1: Client A - Alternative forms of worksite communication

Client A had previously hosted worksite presentations for their staff. However these were poorly attended by staff due to time pressures and a perception that it would take a lot of their time.

In conjunction with the client, we devised 5-minute individual consultations for members at Member Information Stands. These consultations were heavily promoted by the companies’ HR Departments. Carrying out these consultations over a three-month period led to a 15% increase in membership of the plan. (Source: Irish Life Corporate Business)

Example 2: Client B – Use of Waiver Forms

Client B was experiencing low pension plan take-up amongst employees so they put in place a waiver form which required employees to either join the pension plan or to sign the waiver form stating that they are choosing not to do so.

This approach is used by the trustees/employer because it leads to employees taking the decision of joining the pension plan more seriously rather than just putting the decision ‘on the long finger’.

This particular client has used the waiver forms with great success over the last three years. Using the waiver form has led to the amount of members in their plan increasing by 25% since the waiver forms were implemented. (Source: Irish Life Corporate Business)

Example 3: Client C - Employer Lump Sum instead of Employer Regular Contributions

Client C wanted to increase participation rates and contribution rates amongst employees. The client had previously tried to increase regular employer contributions but with limited success. Client C wanted to look at other ways to leverage this spend with the aim of achieving better results.

They decided to use the incentive of a lump sum contribution to get new entrants into the pension plan. The money which the company would have paid into the pension plan for a new member as a regular ongoing employer contribution was instead paid in as one lump sum. Doing this, coupled with a deadline which members would have to respond by if they wanted to avail of the contribution and worksite presentations presence led to the client doubling the amount of members in their scheme over the last 18 months. (Source: Irish Life Corporate Business)