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

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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).

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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

Next steps

This discussion paper has now closed for comments.

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12/01/2022: Information added Discussion Paper closed