Trustee duty to assess value for members on charges

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • Trustee duty to assess value for members on charges
  • Nature of the duty
  • Duty to assess value of member charges at regular intervals
  • Duty to report on value of charges in the DC chair's statement
  • TPR's expectations
  • Schemes to which the duty applies
  • Meaning of 'good value for members'
  • Pointers from TPR
  • Broader elements of good value
  • Assessment process
  • More...

Trustee duty to assess value for members on charges

CORONAVIRUS (COVID-19) UPDATE: In light of the coronavirus pandemic, the Pensions Regulator (TPR) issued guidance stating that, until 30 June 2020, it would take a proportionate response to reports that the charge cap was exceeded because of temporary increases to costs due to coronavirus, provided the trustees took all reasonable steps to bring charges back within the charge cap as swiftly as possible. This easement expired on 30 June 2020.

For further information on the pensions implications of coronavirus, see Practice Notes: Coronavirus (COVID-19)—the pensions implications for trustees.
FORTHCOMING DEVELOPMENT 1: On 24 June 2020 the Financial Conduct Authority (FCA) published consultation paper CP20/9, which contains proposals that aim to make it easier for independent governance committees (IGCs) and governance advisory arrangements (GAAs) to compare the value for money of pension products and services, enabling them to be more effective in assessing value for pension scheme members. Feedback on the consultation paper was sought by 24 September 2020 and, at the time of publication of the consultation, the FCA stated its aim to publish a policy statement by the end of the 2020. However, this was delayed and on 3 June 2021 the FCA explained that it will publish this policy statement during summer 2021.

The proposals in the
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