The Pensions Regulator has published a blog post entitled “All pension savers deserve value for money”. The post considers the reasons behind the consultation on value for money (VFM) across defined contribution (DC) pension schemes, published jointly with the FCA in January 2023, and the next steps in its examination of the VFM framework. It refers to the importance of making it easier for those running DC schemes to provide information to members, and potential members, to enable them to make the best retirement-saving decisions. This is reflected in the consultation's proposal to introduce a new system of public disclosure of comparable metrics across the three pillars of value: investment performance, cost and charges and quality of services.
The focus on default funds, according to the post, reflects the fact that most DC scheme assets are invested in such funds. Standardised, consistent comparable data will help schemes and regulators compare relative performance. This should then drive VFM improvements across the whole DC market.
The consultation closes on 27 March 2023. ‘Phase two’ will involve consideration of extending the review to self-select options, non-workplace pensions and DC pensions in decumulation.
The Pensions Regulator Blog: All pension savers deserve value for money
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