Value for money: a framework on metrics, standards and disclosures: PLSA response

This is the PLSA’s response to DWP’s consultation on a new framework to enable comparisons of value across DC pensions, including both trust and contract sectors. Government and regulators are proposing that all schemes disclose standardised metrics across investment performance, costs & charges, and service/administration and that these are factored into value assessment against either regulator-defined or industry benchmarks. 

While we support the intent to improve value, we believe that the scope of the initiative needs to include more areas of the market, e.g. consolidators, if it is to address all examples of poor value, while there is a risk that comparisons focussed in the wrong areas could result in the unnecessary wind up of certain schemes which still provide good value for their membership. We will continue to work with government as it develops its VFM proposals.