On 11 July 2023, the Government published a number of papers in relation to providing better outcomes for pension savers. One of these was the response to the policy consultation on Value for Money: A framework on metrics, standards and disclosures, which was published in January 2023. The consultation and response were jointly published by the Department for Work and Pensions (DWP), Financial Conduct Authority (FCA) and the Pensions Regulator (TPR).
The Government and regulators proposed key metrics, standards and data disclosures for DC pension schemes under the Value for Money (VFM) framework. They also included proposals for the use of this data in comparisons and assessments of value for money.
The VFM framework will be implemented in phases and the Government and regulators will continue to work with industry to ensure that schemes, providers, and employers are as prepared as possible. It will take time to fully implement the VFM framework; primary legislation will be required and there will be further consultations on draft regulations and FCA rules.
AREF responded to the consultation with the assistance of its Public Policy Committee. AREF agreed with Government that delivering value for money doesn’t just mean low costs and charges. The response can be found here.
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