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In this article, we discuss the importance of employee benefits communication, particularly as they apply to pension plans. We discuss ongoing problems with pension communications, why this problem exists, and how it can be improved to the benefit of participants and organizations alike.
Pension plan communication is ultimately about improving participant engagement, trust, and understanding while supporting them through key pension life events. It’s an expression of your pension plan’s purpose, to support your employee after years of service.
However, many pension plans today are administered as secondary services, largely due to the de-prioritization of pensions as a whole. This lack of investment has created strain on teams who need to engage participants, manage processes, and protect against financial and compliance risk. As expected, communication suffered, often limiting participant communication to outdated systems and prioritizing transactions over personalization.
Effective communication should feel like the culmination of a career-long promise. A chapter in someone’s story, not a footnote. Any changes must benefit the organization and its participants. For this reason, we view pension communication as part of an organization’s overall benefits strategy.
The following tips seek to improve employee engagement, trust, and financial literacy to help plan sponsors and participants get more out of their pension plans.
Communication is only as effective as the systems that support it. With pensions often taking a back burner for many organizations, the technology that supports them similarly suffers.
Third-party tools, like October Three’s Daily Platform, can help streamline administration for plan sponsors while providing a centralized and easy-to-use experience for participants.
Not all participants engage the same way. Some use email, some use traditional mail, call in, or even prefer faxing. Consider communication channels and tools that improve understanding or deliver information based on the participant's preferences.
Digital communication methods, such as video, can be an effective alternative. Shifting toward digital communications can also help reduce long-term administrative expenses by eliminating the physical cost of printing and postage. One of our preferred methods is to provide a secure online portal for participants.
Be aware that transitioning communications to digital methods can be a complex process. Legal criteria must be met, participants must opt in, systems need to be established, and more.
When organizations prioritize risk at the cost of communication, personalization often suffers, and life events become the bare minimum. Participants can feel this shift in priorities, and it can impact trust.
But personalization goes beyond automated text fields and segmented data. Consider the channels available to you, and how data can inform the participant’s overall experience to create communications that are appropriate to their life event.
Not all communications will be pre-planned, as support channels also influence your participants' experience. Ensure that team members who interact with plan participants are thoroughly trained and knowledgeable about the plan. Establishing clear service standards and turnaround times can help maintain consistency.
Support calls are also a good time to record common themes and discover potential efficiencies and opportunities to improve the participant experience. Building a communication calendar can also help ensure quality service and support regulatory requirements.
Expanding communications to include the languages your participants are most comfortable with can be an excellent way to help them get the most out of their plan. Expanding this into your support center can be an excellent next step.
If you’re looking for support in pension administration or looking to improve your communications, October Three can help. From implementation to day-to-day management, our administration platform helps simplify the admin experience for plan sponsors and participants. Click here to learn more about our plan administration service and schedule a quick call today.