Trustees of workplace defined contribution pensions schemes and the wider pensions industry are being urged to help shape the introduction of a new value for money (VFM) framework.
The Pensions Regulator (TPR), the Financial Conduct Authority (FCA) and the Department for Work and Pensions (DWP) are working in partnership to develop a framework to improve the value schemes deliver for savers and enabling comparisons to be made across the defined contribution pension landscape including contract-based and trust-based schemes.
Today, the FCA has launched its consultation for contract-based schemes ahead of the DWP introducing equivalent legislation for trust-based schemes in an upcoming Pension Schemes Bill.
Nausicaa Delfas, TPR Chief Executive, said: “We want every pension saver to get value for money from their pensions. That means good investment returns, and high quality services, for a competitive price. This is a great opportunity for the pensions industry to help to transform pension saving for millions, and to deliver greater value for their retirement.”
Nina Blackett, Interim Executive Director of Strategy, Policy and Analysis, said: “Automatic enrolment has meant more people than ever are saving into defined contribution pensions – the challenge now is to ensure they get good value.
“The VFM framework, on which TPR, DWP and FCA have worked together, will deliver a consistent way to assess and compare the value delivered by both trust-based and contract-based defined contribution (DC) schemes, improving transparency, consistency and competition.
“We encourage trustees of trust-based schemes to respond to the technical detail of the consultation, with a view to ensuring the final framework can be applied effectively to trust-based schemes.”
Notes for editors
- The FCA consultation will run until the 17 October.
- The King’s Speech confirmed the government plans to legislate via the introduction of a Pension Schemes Bill to ensure all pension savers are saving into schemes which delivering value through the value for money framework. The Bill will establish a standardised test for value for trust-based DC schemes.
- The Pensions Regulator is the regulator of work-based pension schemes in the UK. Our statutory objectives are to:
- protect members’ benefits
- reduce the risk of calls on the Pension Protection Fund
- promote, and improve understanding of, the good administration of work-based pension schemes
- maximise employer compliance with automatic enrolment duties
- minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of the regulator’s functions under Part 3 of the Pensions Act 2004 only)
Press contacts
Out of hours
This is for journalists only with a media enquiry. The below number will divert to our on call media officer.pressoffice@tpr.gov.uk
01273 648496
