Top Pension Questions for Harsco Employees
These are the most frequently asked questions for Harsco employees from our weekly webinars.
Question:
How does the Harsco Pension Scheme align investment strategies with the financial goals of its members, and what measures are in place to assess the adequacy of these strategies over time?
Answer:
Investment Strategy Alignment: The Harsco Pension Scheme aligns its investment strategies with members' financial goals by regularly reviewing its Statement of Investment Principles (SIP) and adjusting strategies based on quarterly performance monitoring. The Trustees use tools such as LCP Visualise to track investment returns and funding levels, making sure the Scheme is on track for full funding by 2025. This review process helps maintain that the investment strategies are adequately meeting long-term goals and adapting to market conditions(Harsco Pension Scheme_3…).
Question:
In what ways does the Harsco Pension Scheme engage with its investment managers to maintain transparency and stewardship in voting on significant shareholder resolutions?
Answer:
Engagement with Investment Managers: The Harsco Pension Scheme works closely with its investment managers, delegating stewardship activities like voting on shareholder resolutions. These managers, such as BlackRock, follow rigorous voting and engagement policies, which are reviewed regularly. The Trustees maintain transparency by monitoring managers’ ESG integration and voting behaviors and by addressing significant issues, such as modern slavery or climate risks(Harsco Pension Scheme_3…).
Question:
What are the specific retirement benefits available to employees under the Harsco Pension Scheme, and how can members tailor their retirement strategies to fit their individual needs?
Answer:
Retirement Benefits Customization: The Harsco Pension Scheme offers a variety of retirement options, including default and self-select investment options that reflect member demographics and retirement preferences. Members can tailor their retirement strategies through diversified funds, aligning their investments with individual needs. The default strategy has been reviewed to confirm appropriateness for the majority, with options for drawdown, lump-sum withdrawals, or annuity purchases(Harsco Pension Scheme_3…).
Question:
How does the Harsco Pension Scheme respond to the changing demographics of its membership, especially in terms of investment risk and available retirement options?
Answer:
Adapting to Demographic Changes: The Trustees monitor demographic trends and modify the Scheme’s investment strategies accordingly. For example, as the Scheme matures, the investment allocation moves towards lower-risk assets to reflect the changing membership profile. Regular reviews help the Scheme adapt to the evolving needs of its members, helping to reduce risk while maintaining adequate returns(Harsco Pension Scheme_3…).
Question:
What is the process for Harsco employees to access their pension statements, and how frequently are these updates provided to keep members informed about their retirement savings progress?
Answer:
Pension Statement Access: Harsco employees can access their pension statements through regular updates provided by the Trustees, typically on a quarterly basis. These statements, including detailed reports of contributions, investment growth, and progress toward retirement goals, help members stay informed and make adjustments as necessary(Harsco Pension Scheme_3…).
Question:
How does Harsco incorporate Environmental, Social, and Governance (ESG) considerations into its investment philosophy, and what impact do these principles have on the pension scheme's performance?
Answer:
ESG Considerations: The Harsco Pension Scheme integrates Environmental, Social, and Governance (ESG) principles into its investment strategy, regularly assessing its managers’ ESG practices. These assessments include human rights, climate change, and CEO pay ratios, ensuring that investments are socially responsible and aligned with long-term sustainability goals(Harsco Pension Scheme_3…).
Question:
What are the implications of the current IRS limits on contributions to retirement plans for employees participating in the Harsco Pension Scheme in 2024?
Answer:
IRS Limits Impact: The current IRS limits on contributions to retirement plans, such as those applicable in 2024, affect Harsco employees by capping how much they can contribute tax-free. Understanding these limits helps employees plan their contributions to enhance employer matching and ensure they fully benefit from their retirement benefits(Harsco Pension Scheme_3…).
Question:
With regards to the ongoing performance evaluations, what benchmarks does the Harsco Pension Scheme use to measure the success of its investments, and how are these benchmarks selected?
Answer:
Benchmarking Investments: The Harsco Pension Scheme uses various benchmarks to assess the performance of its investments. These benchmarks are chosen based on expected risk and return profiles and are reviewed quarterly. Monitoring against these benchmarks helps the Scheme’s strategies stay aligned with long-term funding goals and adapt to changing market conditions(Harsco Pension Scheme_3…).
Question:
How can Harsco employees obtain more information on the specific investment options available within the pension scheme, including the associated risks and potential returns?
Answer:
Investment Options and Information: Harsco employees can obtain detailed information about their pension’s investment options, including the associated risks and potential returns, through regular reports from the Trustees and investment consultants. This openness allows employees to make informed decisions about their pension participation(Harsco Pension Scheme_3…).
Question:
What is the preferred method for employees to contact Harsco to gain further clarification on their questions about the pension scheme, and what resources are available for them during the retirement process?
Answer:
Communication Channels: Employees can contact the Trustees of the Harsco Pension Scheme for clarification on pension-related questions through established communication channels. Resources, including personalized financial advice and regular meetings with investment managers, are available to assist employees during the retirement planning process(Harsco Pension Scheme_3…).