Fast-forward to today and HR professionals are now finding themselves in the glare of the pensions spotlight.
The past decade has seen a transition from predominately defined-benefit provision to one where defined-contribution (DC) provision is the most common in the private sector.
The HR community has had to contend with the internal ramifications of this transition - negotiations with unions, operating a DB scheme for existing staff alongside a DC scheme for new employees and - in some cases - telling existing DB members that their scheme is closing. This has been on top of the recent pressure brought on by the recession when many companies have had to make redundancies.
The growth of DC pension schemes has also led to an increased demand for information and advice on pensions and this has placed pressure on HR professionals who can often feel constrained talking to employees about their pension offering.
A recent NAPF report, Talking Pensions, found pensions are the benefit employers found it most difficult to talk to their staff about despite the fact a pension is often the most valuable benefit an employer can offer. Three quarters of employers (75%) said they felt more comfortable discussing private healthcare than pensions, 73% were happier talking about life assurance and 68% company share schemes.
To address these concerns the NAPF has called on the Government to review the legal framework surrounding employer communications on pensions to make it easier for HR professionals to talk to staff about their pension provision.
Life from 2012 will become even more demanding for the HR professional. At the end of that year, all employers in the private and public sector will have to start to automatically enrol their staff either into their scheme or into Personal Accounts. For existing staff, who previously had chosen not to join the scheme, and for new employees this will not only bring a new communication challenge but also an administrative challenge. Even if many staff choose to opt out, they will still have had to be enrolled in the first place.
All HR professionals will have to ensure that systems are in place to manage this huge task - an even more demanding one for those operating over many branches or sites. The NAPF has been working with the Government to try and ensure regulations are realistic and manageable for companies both large and small.
Despite the pressures HR departments and the wider company may be under, do workplace pensions still matter? Yes they do.
Our research shows that pensions continue to be the most highly-valued employee benefit in the eyes of employees. They continue to play an important part in the recruitment and retention package and demonstrate that employers want to help their staff save for retirement. With 15 million people relying on a workplace pension for an income in retirement, they remain the central plank of UK provision and certainly they work best when they are provided through the workplace.
It is clear that HR departments are becoming more and more central to the success of their employers pension scheme and also the success of the whole country's ability to save enough for retirement. It is a challenge certainly worth taking on and the NAPF will support HR professionals every step of the way.
Joanne Segars is the chief executive of the National Association of Pension Funds (NAPF)
