The UK Minister for Pensions Laura Trott has announced a shake-up of private pensions to create fairer, more predictable, and better-run pensions.
Measures include consultation on new Value for Money framework, defined contribution scheme charge cap reforms, further work on small pots, and extension of Collective Defined Contribution (CDC) pension schemes. These plans will help address the pension inequality gap which has risen since the decline of Defined Benefit (DB) and the emergence of Defined Contributions (DC).
This consultation seeks views on policy proposals to require trustees and managers of DC relevant occupational pension schemes and the providers and Independent Governance Committees (IGCs) of workplace personal pension schemes to disclose, assess and compare the value for money their workplace pension scheme provides.
This policy seeks to improve retirement outcomes for millions of defined contribution pension savers. By promoting a focus on transparency, competition, and innovation, these proposals aim to ensure that savers are receiving optimum value for money and that investments by trustees and providers are in the best interests of savers.
This consultation is aimed at:
- DC pension scheme trustees and managers
- Independent Governance Committees (IGCs) of workplace personal pension schemes
- Providers of workplace personal pension schemes
- DC pension scheme savers and beneficiaries
- pension scheme service providers, other industry bodies and professionals
- employers
- civil society organisations
- consumer organisations / representatives with an interest in pensions capability / financial capability
- pensions administrators
- any other interested stakeholders.
The consultation seeks to gather views and evidence on the metrics, standards and public disclosure of data required under the proposed Value for Money (VFM) framework and the proposed use of this data in comparisons and assessments of VFM.
This consultation applies to Great Britain (England, Scotland and Wales). Occupational pensions are a devolved matter for Northern Ireland, and it is envisaged that Northern Ireland will make corresponding provisions.
The consultation period began on 30 January 2023 and runs until 27 March 2023.
See: Value for Money: A framework on metrics, standards, and disclosures - GOV.UK (www.gov.uk)