Royal Mail Pension Plan is considering a revamp of its communications strategy after more than half of its members said they do not understand how their scheme works.
Only 24.8 per cent of members said they understood how the plan operates and their benefits are calculated, while 62.4 per cent did not, according to a survey.
The scheme will be taking into account feedback from the survey and the pensions helpline, as well as from union representatives that sit on its trustee board.
“It’s an idea. Over time the scheme has [become] quite complicated; you find yourself trying to explain the ins and outs,” said Mark Rugman, head of membership and benefits at the plan. “We do know from people calling they don’t understand all that.”
The scheme is considering reducing the amount of text in its communications, as well as increasing the use of illustrations to make information more accessible, Rugman said. It is also looking at whether to segment its membership to further tailor its communication strategy.
Schemes looking to follow this example should start by formulating a policy and determining the outcome they want to achieve before segmenting employees, said Peter Nicholas, chief executive at communications company AHC.
While someone in their sixties might have more of a focus on retirement, Nicholas added: “Someone in their twenties has a very different attitude as to what might happen in 40 years.”
To avoid information overload, the scheme uses paper communication for information such as benefit statements and refers members to its website to get more detail about their pension arrangements.
The survey also found that 91 per cent of the scheme’s active members also prefer paper communication to online.
The postal workers' scheme does not plan to stop distributing information to members in print, and has previously defended this form of communication, particularly as some members do not have regular internet access.
Other schemes including Avon Pension Fund have opted to reduce paper communication in order to cut costs, and some argue this also improves security.
“When information goes to print you have got the cost and postage," said Craig Pearce, personalisation developer at Shilling. "Stuff that goes through the post can get lost in the post.”
But he added the communications used – whether print or digital – should be designed based upon the needs of the membership.
