Pensions and Retirement Training Course on Contribution Design and Matching

Module 1: Fundamentals of Pension Contributions
Overview of contribution principles and funding mechanics
Defined benefit vs. defined contribution funding approaches
Employer vs. employee roles in contribution financing
Legal, regulatory, and tax implications of contributions
Equity and fairness in contribution policies
Pension coverage and adequacy: global trends and benchmarks
Impact of contribution design on long-term member outcomes
Comparative analysis of contribution frameworks across different pension systems

Module 2: Designing Employer and Employee Contributions
Setting contribution levels: fixed, variable, or performance-based
Structuring tiered or graded contribution scales
Approaches for contribution flexibility (opt-in/opt-out structures)
Affordability vs. sustainability trade-offs
Financial modeling for contribution adequacy
Adjusting contributions for inflation, longevity, and investment performance
Aligning contribution design with corporate compensation strategies
Scenario exercise: Building a sustainable contribution model for a new pension scheme

Module 3: Matching Contributions and Incentive Mechanisms
Matching contribution formulas: simple, proportional, capped, and progressive
Designing incentives to enhance member participation and retention
Behavioral economics and savings motivation: nudges and framing effects
Incorporating matching incentives into performance and benefits strategies
Employer communication and transparency in matching structures
Designing equitable matches across diverse employee income groups
Cost-benefit analysis of matching policies for employers
Case study: Developing a sustainable and motivating matching policy

Module 4: Auto-Enrollment and Contribution Escalation Policies
The rationale for auto-enrollment in defined contribution plans
Designing default contribution rates and escalation patterns
Legal and operational frameworks for auto-enrollment programs
Overcoming behavioral inertia and opt-out challenges
Integrating communication and education to support participation
Evaluating success metrics: participation, deferral rates, and contribution growth
Leveraging technology to automate enrollment and contribution adjustments
Practical workshop: Building an auto-escalation and default contribution strategy

Module 5: Evaluating, Monitoring, and Reforming Contribution Policies
Setting up monitoring systems for contribution trends and adequacy
Measuring contribution effectiveness using KPIs and analytics
Periodic review mechanisms for contribution and matching structures
Stress testing contributions under economic downturns or demographic shifts
Adapting contribution frameworks to labor market and macroeconomic changes
Financial sustainability modeling for long-term viability
Incorporating member feedback and satisfaction measures
Group exercise: Designing a contribution review and reform action plan