Challenges
The oversight of group risk schemes continues to grow more complex and time-consuming for employers (and consultants / brokers supporting them), particularly in the event of death claims, due to enhanced regulation / compliance, complex family circumstances and the likelihood of beneficiaries being overseas.
The growth of master trusts for pension benefits has done little to alleviate the burden on employers in the event of a death in service as it is often the case in a master trust that the responsibility to determine the correct beneficiaries falls back onto the employer. Accordingly, the employer may take on the legal responsibility of nominating the beneficiary(ies) for payment of the benefits.
Death in Service – Professional Trusteeship
Employers are increasingly opting to separate their pension and risk benefits by establishing stand-alone group risk schemes with a professional trustee appointed. This ensures independence during market reviews, ease of moving provider (ensuring best value for money for the employer) and the use of a professional trustee to provide full service at time of claims to remove from the employer the responsibility and time expended in deciding on the correct beneficiary(ies).
DTS are highly skilled death in service trustees with extensive claims’ experience via very robust and detailed claims processes. By selecting DTS as independent, professional trustee to death in service schemes, employers will benefit from practical, relevant and cost-effective trusteeship from a highly experienced professional trustee.
Death in Service – Claims Support Service
Many employers are finding the death claims process very challenging and time-consuming due to difficulties finding the correct beneficiary(ies) in complex family units, dealing with overseas beneficiaries and taxation consequences, and the need to be familiar with the scheme legal documents (Trust Deed, Rules and Policy Documents, etc.).
Employers are reaching out for help with these claims and DTS provide a claim support service whereby we apply our knowledge, expertise and experience to work the entire claim process with the employer through our established procedures. This is of considerable support to employers, whether they are the trustee themselves or required under the master trust to make these decisions, thus removing both the time and resourcing burden from them. DTS provides this service on a per-claim basis.