Update: Measuring value for money in DC pension schemes

The FCA and the Pensions Regulator (TPR) have published the feedback they have received following their joint discussion paper on developing a framework for measuring value for money (VFM) in defined contribution (DC) pension schemes.

The feedback statement summarises the responses the regulators received on three key elements of VFM – investment performance, customer service and scheme oversight, and costs and charges. Most respondents agree that greater transparency of and access to pensions data is needed but the regulators received wide ranging views on how to measure and compare different elements of value.

The regulators will continue working with industry over the coming months before publishing a joint consultation with the Department for Work and Pensions towards the end of 2022.

Lucy Hadrill