Measuring value for money in DC pension schemes

The FCA and the Pensions Regulator (TPR) have published a joint discussion paper on developing a framework for measuring value for money in defined contribution (DC) pension schemes. The FCA and TPR are proposing a common framework for disclosing information on the key elements which make up value for money: investment performance, scheme oversight (including data quality and communications), and costs and charges.

The framework will also allow trustees and independent governance committees to compare their scheme’s costs and charges, investment performance and service standards with similar offerings from other providers.

Comments on the discussion paper should be submitted by 10 December 2021 and the FCA and TPR will publish feedback and outline next steps in 2022.