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Professional Governance
Hand over the fiduciary responsibilities of running a retirement fund to a professional board.
The two biggest advantages of belonging to an umbrella fund are:
Hand over the fiduciary responsibilities of running a retirement fund to a professional board.
Cost savings can be achieved by standardising many benefits and options and sharing fixed costs, such as audit fees, across a larger group of members.
What are the differences between a standalone fund and an umbrella fund?
The employer
The commercial administrator
50% appointed by the employer
50% elected by fund members
Appointed by the sponsor
May include independent/professional trustees
Appointed by the board of trustees
Appointed by the board of trustees
Full flexibility – within legislated constraints
Usually a menu of standard options available to participating employers/sub-funds