Pensions: what's new this week - September 2, 2024

The Pensions Regulator asks trustees to help shape VFM framework

We reported previously on the Financial Conduct Authority’s consultation on a value for money framework for savers in DC default arrangements. The consultation relates to FCA-regulated arrangements, but the government intends to legislate to apply equivalent measures to trust-based schemes and The Pensions Regulator (TPR) encourages trustees to engage with the consultation.

By way of reminder, the proposed framework has four key aspects:

• consistent measurement and public disclosure of investment performance, costs, and service quality against specified metrics;
• assessment of performance against other arrangements on a consistent and objective basis;
• disclosure of assessment outcomes; and
• action for under-performing

TPR has now published a blog post underlining that this is an opportunity for trust-based schemes to shape the new framework. TPR asks schemes to help to identify any changes required, to inform the legislative regime that will follow in the Pension Schemes Bill. In particular, TPR is seeking views on how best to measure quality of service – for example, what metrics would clearly demonstrate better outcomes for savers.

For further information and to arrange training on the proposed VFM framework, please contact your usual A&O Shearman adviser.

Read TPR’s blog post

Read the consultation paper

Save the date: Pensions Academy Online, September 17 and 19 2024

Our next Pensions Academy Online webinars will take place on September Tuesday 17 and Thursday 19 2024. Each webinar begins at 9.30am and will last approximately one hour. Join us for:

• Legal update – Tuesday September 17: we’ll round up all the latest developments and outline what’s coming in the new Pension Schemes Bill and wider pensions review, as well as highlighting some significant decisions from the Pensions Ombudsman and the Court of Appeal.
• Dilemmas for DB Trustees – Thursday September 19: in this session we will look at the challenges and choices on the agendas of DB trustee boards: asset allocation and changes to surplus rules; run-on or endgame; buy-in, buy-out or consolidate?

Click here to register