DC Provider Reviews: Why Charities Should Take A Fresh Look At Their Pension Provider

While employers must comply with auto-enrolment legislation, there is no specific requirement to regularly review their pension provider. However, as Dale explained, governance expectations continue to evolve. 

 

The DC pensions landscape has changed significantly over the last decade. Providers continue to invest heavily in technology, retirement solutions, member communications and investment strategies, while market consolidation means fewer, larger providers now dominate the sector. 

 

A provider that was considered market-leading five or ten years ago may no longer represent the best fit for a charity's workforce today. 

 

Reviews are often triggered by service issues, concerns about member outcomes, legacy arrangements or rising charges. However, Dale encouraged charities not to wait until something goes wrong. 

 

 

A comprehensive review should consider a range of factors including investment performance, default fund design, administration, member communications, employer support, retirement options, value for money and ESG credentials. 

 

 

One of the strongest messages from the session was the importance of reviewing the default investment strategy. Our recent Charities Pensions Club DC Engagement Survey found that approximately 93% of members remain invested in their scheme's default fund. With such a high proportion of members relying on the default option, its design is arguably one of the most important factors influencing retirement outcomes. 

 

As Dale highlighted during the session, most members will never actively choose their investments, making it essential that charities understand how their provider designs, manages and monitors its default strategy. 

 

Increasingly, charities are also considering whether their default fund reflects their organisational mission and values. Questions around stewardship, responsible investment and mission alignment are becoming more prominent across the sector. 

 

Members may recall a Charities Pensions Club session in 2023 where Ben Clarkson, then Chief Operating Officer at Asthma + Lung UK, shared the charity's mission-aligned investment journey and the practical considerations involved in ensuring pension arrangements reflected the organisation's wider purpose. Asthma + Lung UK has since publicly shared its experience of aligning both pension and investment arrangements with its charitable objectives. 

 

The session also explored developments such as target-dated funds, evolving retirement pathways and the growing focus on responsible investment. For many charities, reviewing the default fund is now about more than performance alone; it is also an opportunity to ensure pension arrangements support their broader values and long-term objectives. 

 

 

Providers play an important role in communicating with members, but our recent DC Engagement Survey suggests that the most engaged workforces benefit from a broader approach. 

 

The survey found that charities reporting the highest levels of member engagement were typically those that did not rely solely on provider communications. Instead, they supplemented pension communications with wider financial wellbeing initiatives, education and support throughout the year. 

 

This helps employees better understand their pension benefits, improve retirement planning and build greater financial confidence. 

 

For charities reviewing their DC arrangements, this is an important consideration. Strong provider communications are valuable, but they should form part of a wider financial wellbeing strategy rather than being viewed as the complete solution. 

 

As part of Charities Pensions Club membership, organisations have complimentary access to the First Actuarial Financial Wellbeing MOT Tool, helping employees assess their overall financial wellbeing and identify practical steps to improve their financial resilience and retirement preparedness. 

 

 

Good governance remains at the heart of successful DC arrangements. 

 

Regular reviews help employers challenge providers appropriately, monitor service standards, assess value for money and ensure pension arrangements continue to meet the needs of members. 

 

Without ongoing governance, schemes can become outdated, member engagement can decline and opportunities to improve outcomes may be missed. 

 

Dale outlined a structured approach to provider reviews, including defining objectives, using consistent assessment criteria, comparing providers on a like-for-like basis and maintaining clear documentation throughout the process. 

 

 

For charities that lack the time or internal resources to undertake a detailed review themselves, independent support can help provide an objective assessment of the market, benchmark existing arrangements and evaluate whether members are receiving good value and appropriate outcomes. First Actuarial works with a range of charities to carry out DC provider reviews, helping organisations assess their current arrangements against evolving market standards and member expectations. 

 

 

The key takeaway from the session was clear: while DC provider reviews may not be a statutory requirement, they are becoming an increasingly important element of good pension governance. 

 

With 93% of members remaining invested in default funds and growing evidence that broader financial wellbeing support improves engagement, charities have an opportunity to deliver genuinely positive retirement outcomes. 

 

Regular provider reviews, combined with effective governance and a proactive approach to financial wellbeing, can help ensure pension arrangements continue to deliver value for both employers and members. 

 

This session was presented by Dale Walmsley, Partner at First Actuarial, at the Charities Pensions Club One Day Conference on 10 June 2026. 

 

First Actuarial are the Charities Pensions Club Actuarial Partners (2025, 2026)