Small defined contribution pension schemes face big regulatory changes
The government’s decision to subject smaller DC schemes to an enhanced value for money assessment could have ramifications across the wider industry
Smaller occupational defined contribution (DC) schemes must now undergo a new and enhanced value for members (VFM) assessment. While the new system aims to secure the best possible deal for pension savers, it could have implications for adviser costs, fund administration and more.
In October the UK government and The Pensions Regulator (TPR) introduced the new VFM assessment for DC schemes with less than £100m.
