DP21/3: Driving Value for Money in Defined Contribution Pensions

Consultation opens
16/09/2021
16/09/2021
Consultation closes
10/12/2021

We invite views on our proposed framework to assess and promote Value for Money in all FCA and TPR-regulated Defined Contribution pension schemes (workplace and non-workplace).

Read DP21/3

A focus on Value for Money (VFM) is a key part of ensuring Defined Contribution (DC) pensions maximise the savings consumers have at retirement. We are launching a discussion jointly with The Pensions Regulator (TPR).

We aim to promote consistent assessments of VFM, focusing on metrics for the key drivers of VFM to enable meaningful comparisons between schemes.

We believe it is necessary to widen the requirements for firms to disclose data, as well as potentially create a framework for assessments across the entire pensions sector, to drive a long-term focus on VFM. At this stage, we are focusing on VFM in accumulation. 

Who this applies to

This affects those who are involved in the workplace and non-workplace pensions markets. This includes:

  • occupational pension schemes, pension providers and asset managers
  • the governance bodies of pension schemes, such as trustees of occupational pension schemes, IGCs, and their advisers
  • scheme members and their advisers
  • consumer representative groups

Respond to this discussion paper

Tell us what you think of our proposals by 10 December 2021. Send responses to:

[email protected]

Next steps

We will consider your feedback and publish a Feedback Statement in 2022, setting out your feedback and our next steps.