Pensions - Articles - Pensions Regulator reviews member assessments in DC schemes

 TPR believes many trustees of small and micro schemes may not be properly assessing value for members.

 The thematic review will consider the explanation of the value for member assessments made by 100 small and micro schemes in their chair statements. A report on the findings is expected to be published by summer 2018.

 It is essential that members get the benefits they deserve from their pension. Trustees are required to carry out an annual value for member assessment, which can help trustees to identify and address poor performing areas, in turn making a scheme more likely to provide good outcomes for members.

 The findings of TPR’s review will enable the regulator to understand the challenges trustees face when conducting the assessment. Any examples of good practice highlighted by the review may be used to help develop targeted guidance for this sector, supporting trustees of small and micro schemes to achieve value for members.

 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.”