Pensions - Articles - Mercer backs Pension Regulator’s new regime for workplace DC

 Mercer welcomed the Pension Regulator’s launch of a consultation on its proposed new regulatory approach to workplace defined contribution (DC) schemes ahead of full-scale auto-enrolment.

 Paul Macro, DC Partner at Mercer commented, "Mercer welcomes all moves that make clear exactly what is expected of those running DC schemes and a policy of 'disclosure of compliance' is certainly a positive step forward. It gives members reassurance - or otherwise - that their employer pension arrangements are being well run.

 "However, we must be careful that this does not become a tick box exercise with more focus put on producing the disclosure statement rather than doing the actual governance.

 "Furthermore, the idea that small schemes cannot be run to appropriate standards is not the case. Rather, it is the willingness of those governing schemes to do what is necessary that is crucial.”

 He added, “Overall, Mercer continues to be concerned with the lack of clarity around contract-based schemes. We once again call on the Government to take the opportunity that auto-enrolment brings to rationalise the oversight of employer sponsored DC arrangements, regardless of whether they are trust or contract based.

 Members of employer sponsored DC pension schemes need to be given the same level of care regardless of the type of vehicle chosen by their employer.”