Review launched into pension trustees’ value offering
The regulator (TPR) said it is concerned that a number of small and micro business aren’t properly assessing value for workplace pension members.
As a result, it has launched a review looking at hoe trustees asses value for members in 100 small and micro schemes.
TPR said it is essential members get the full benefits from a pension. Trustees are required to carry out an annual ‘value for members’ assessment to help them identify and address poor performing areas.
The review should also help TPR understand the challenges faced by trustees.
Anthony Raymond, acting executive director of regulatory policy at TPR, said: “Poor value for members is one of the key risks that trustee boards need to manage.
“From our research and experience we believe that many small and micro schemes are failing to meet our expectations by providing a quality assessment of how their charges represent value for members. We are conducting this thematic review to better understand this position.
“We are concerned about a tail of sub-scale pension schemes and strongly believe that it is unacceptable to have two classes of DC pension saver – those that benefit from the premium of scale and good governance and administration, and those that do not.”