Stakeholder Engagement

Overview:  

Public retirement systems are facing increasing public scrutiny and must maintain confidence with multiple stakeholders, especially highlighted during the Covid-19 pandemic. Effective communication is crucial for building trust and ensuring stakeholders are informed, especially in times of crisis. 

1. The Need for Engagement 

   Public retirement systems are at the center of debates about their future, requiring better methods to communicate with stakeholders. Effective communication is crucial in times of crisis, such as during the pandemic, to maintain confidence in the system. 

2. Communications Policy 

   Strong communication policies are essential for informing stakeholders. These policies typically focus on guiding principles like accuracy, transparency, and timely delivery of information. Social media, Freedom of Information Act (FOIA) compliance, and periodic evaluation are important elements. 

3. Stakeholders 

   
   Stakeholders include anyone who is affected by or who can affect the organization. These  include the participants, the jurisdiction and plan sponsor, the media, business partners, prospective employees, and the general public. Each group has different interests and requires tailored communication strategies. 

4. Roles in Communication 

   
   The CEO is generally the primary spokesperson. In larger systems it is often with support from a Public Information Officer (PIO) who manages day-to-day communication. Trustees are expected to communicate carefully, with guidelines for when and how they speak on behalf of the system.  

5. Challenges 

   
   Public pension systems face challenges, such as explaining complex benefits, educating new legislators on fiduciary duties, managing benefit changes, and addressing public concerns about retirement security. There’s a growing pressure to move away from traditional pension models, which can affect public perception. 

6. Proactive Communication Planning 

   
   A proactive communication plan helps engage stakeholders and measure the success of communication efforts. Plans often include using modern tools like social media and newsletters, addressing different stakeholder groups, and building confidence in the system’s management and investments. 

7. Measuring Success 

   
   Success is measured through various methods such as website analytics, stakeholder surveys, focus groups, and peer benchmarking. These tools help gauge the effectiveness of communications and identify areas for improvement. 

8. Evaluation and Adaptation 

   
   Regular evaluations of communication efforts ensure they remain effective, especially as circumstances and stakeholder needs evolve. 

Lessons Learned 

Public retirement systems need clear, proactive communication strategies to engage stakeholders, manage public perceptions, and navigate crises. Regular evaluations and peer comparisons help maintain best practices in stakeholder engagement.