Why face-to-face member engagement outdoes digital…for now

While digital technology is transforming how pensions schemes operate and invest, we prize this ‘old-school’ annual event because of what it represents and delivers. 

There is nothing like having someone challenge the chairperson or an investment director directly by asking: “Why are you doing this?”

My conversations on the day with 60 members provided an invaluable feedback for me that no online survey, digital exchange or email currently captures. 

Members wanted reassurances about the long-term security of their pensions, and they were keen to find out more on our efforts as a responsible and sustainable investor

It matters, therefore, that nearly 400 people came to listen to, but also question, the management of the fund on what they are doing with their money.

Significantly, member numbers are increasing each year, and this is why we use a prestigious venue – the Royal Elizabeth Hall in London’s Southbank Centre this year – to host it. 

Face-to-face still has power over digital

For the 88,400 or so members who were unable to attend, technology does provide the answer through its powers of distribution. We are packaging up the content in video form to be accessed via our website and other digital channels, which we will be looking in 2020 to upgrade and make more accessible and user-friendly.

Technology enables us to reach out and forge that vital connection with the maximum number of members. 

Such engagement is critical for a pension provider like LPFA, which provides services to its employer clients and therefore does not have a direct relationship with members. We share this challenge with many other pooled pension funds as well as other industry players, although our approach to engagement tends to differ from most other schemes and pension providers. 

Two dominant preoccupations emerged at our forum: first, members wanted reassurances about the long-term security of their pensions and, second, they were keen to find out more on our efforts as a responsible and sustainable investor. 

Reassuring members is paramount

The threat of scams is something with which the entire pensions industry is wrestling with at present because of the volume and numbers involved.

It is something that has worried a lot of our pensioner members, who perceive it as the biggest threat to their financial well-being in the future – so much so that it has overtaken their concerns about the risks of economic uncertainty.

Given this unease, the person-to-person engagement at the forum proved important in helping allay these concerns. 

Being responsible and sustainable

Environmental, social and governance issues are the other major theme that, rightly, no pension fund can ignore today.

We dedicated a special session to this subject at the forum to explain our entire approach on ESG, walk members through our methodology, and to review the performance to date.

It was an opportunity to fit this strategy within the bigger objective of managing risk and generating sustainable long-term returns. LPFA needs to continue to pay out pensions for the next 30 years or more, so these risks are important.

As an organisation, we are at the beginning of the journey in terms of harnessing technology to increase member engagement.

The phrase ‘no input, no output’ comes foremost to mind when it comes to improving how we use digital tools in our efforts to establish a link with members.

Multi-media approach

We are waiting for the benefits of our improved letters and newsletters to feed through so that we can evaluate how best to move forward.

What is clear is that our members want more information flow and much greater variety in how it is delivered. 

We are only at the start of our digital member engagement strategy.

Our collaborative approach to making improvements means we will look to learn from others. That means not just seeking best practice in the UK but overseas as well.

We must do this while never losing sight of our objectives as a defined benefit scheme: to ensure that the LPFA exists to provide first class pensions for its members while supporting the long-term financial health and sustainability of the fund for the benefit of future generations. 

Robert Branagh is managing director at the London Pension Fund Authority