Zurich Life — a tradition of trust (Sponsored)

With Zurich, Master Trust directors have access to some of the best governance and risk management experts, framework and tools in the world, says Rose Leonard

Founded in Switzerland 150 years ago, the aptly named Zurich is one of the leading Master Trust providers in Ireland and part of Zurich Insurance Group, one of the largest and most experienced insurance companies in the world*. 

In addition to being regulated by the Central Bank of Ireland, Zurich Life’s financial strength is underpinned by the strength of the group’s capital position**.

Zurich has been operating in Ireland for more than 40 years, so it is no surprise that the provider has long been a trusted name for employers who have come to learn that setting up and managing their employer pension plan with Zurich will be seamless and pain-free. 

With a client base spanning local, medium-sized businesses through to large multinational organisations, Zurich has a reputation for designing and implementing employee benefit solutions tailored to suit both employers and their employees.  

“We have substantial experience of transitioning assets from single trust pension schemes into the Master Trust,” says Rose Leonard, Head of Corporate Sales and Customer Relationship Management, Zurich. 

“Our dedicated onboarding and transition team works with employers to develop a transition plan and project manage the onboarding of their pension scheme.

“With ever-changing pensions legislation leading to a need for improved governance, there will be more ongoing demands on employers and their business. 

“Employers can rest assured that Zurich has the right structures in place to offer assistance and support throughout the relationship,” says Leonard.

Choosing the right provider

As a director of the Zurich Ireland Master Trust Dac (ZIMT Dac), Leonard is well-placed to advise both employers and employees on pension schemes. 

Your first step, she says, should be to look at “the DNA” of the Master Trust provider and Trustee company you are considering for information on financial strength, governance, risk management capabilities and overall experience in pensions. 

“All of the insurance companies in Ireland will score highly in this category and the regulators – the Central Bank of Ireland and Pensions Authority – do a good service for the public in this regard as insurance companies and pension schemes are highly regulated entities,” she says.

“They also need to watch out for how the Master Trust Provider will engage as employers want access to good information on their own scheme as well as oversight and deep insights into how things are being managed. After all, it is your workforce who are the beneficiaries, and it is the employer and the member employees who are contributing.

“Online access for employers and their employees is important so that you can access information on your scheme easily and at any time. And while, at Zurich, we see technology as essential, we don’t believe that technology alone is the solution – it is the essential enabler to the solution, however. 

“Zurich provides Master Trust members and their employers with digital tools so that you can have oversight of your benefits at all times. 

“Combined with these tools are our competent people who meet and talk to employers and their employees consistently to facilitate their active engagement with their important benefits,” Leonard says.  

Employee well-being

Currently, the job market is very much employee-led, with many companies finding it difficult to attract and retain talent***. 

To this end, Leonard says it is important for employers to “watch out for the holistic well-being of employees”, including their financial well-being, while also examining how the Master Trust provider can help in this respect.

“Mental health issues often start with financial stress when people can’t afford the mortgage anymore or are finding childcare very expensive. The diversity of the workforce also needs to be considered as the needs of international workers may differ from those who plan to stay and settle in Ireland,” she says.

The needs of workers who are just starting to accumulate a pension fund may also differ from those who have been contributing for decades and may already have accumulated sizeable pension pots. 

“It’s important to engage your Master Trust provider to help with a diverse workforce – to add value to each and every one of your employees, bearing in mind that they are starting from different places,” advises Leonard.

“A pension will be one of the most valuable assets a person may have – right up there with their house, if not even more valuable. 

“So, in a market where there is intense competition for labour, with employers offering competitive salaries and extra benefits such as free lunches, treats, gift vouchers or gym membership, none of them come near in value to a pension.”    

What is a Master Trust?

A Master Trust is simply a large pension scheme set up under trust. It differs from traditional company pension schemes in that multiple employers coexist under the one trust deed. 

Pensions expert Leonard says that, while this method offers all the benefits of a regular pension held under trust, it also allows the employer to be free of onerous regulation and legal responsibilities.

“The directors of the Trust are responsible for safeguarding the assets, and for having a comprehensive framework in place to ensure that the Master Trust is run properly, that they have oversight and influence on all aspects, and it is the directors who are answerable to the regulators,” says Leonard. 

It is important for employers to be aware of the financial strength of their Master Trust provider and trustee company, Leonard adds, as this attention to good governance and risk management will help drive better outcomes for members.

“The most important aspect, however, is the investment – the default strategy and the ability of the investment manager to drive investment returns,” she says. 

Zurich is not the only firm offering services and advice to customers. However, Zurich has the added advantage of a long and reputable track record, something it looks forward to continuing in the future. 

“Zurich aims to deliver value to employers and their employees through active investment fund management and it has a long track record of delivering above average returns on investments*,” says Leonard. 

“This outperformance, compounded over several years*, has a significant impact on the pension pots members will ultimately have when they retire – and it is all done in a risk-controlled environment.   

At Zurich, the directors of the Master Trust have access to some of the best governance and risk management experts, the framework and tools serving one of the biggest insurance companies in the world.*   

“Practically all defined contributions, even the largest ones, will move into a Master Trust. If you would like an in-person meeting to discuss your specific scheme, drop me a mail at rose.leonard@zurich.com.”

Interview by Arlene Harris

Warning: Past performance is not a reliable guide to future performance. 
Warning: The value of your investment may go down as well as up. 
Warning: If you invest in this product, you may lose some or all of the money you invest. 
Warning: Benefits may be affected by changes in currency exchange rates.