TPR prompts smaller DC pensions schemes to prepare for new required assessment

Article summary

The Pensions Regulator (TPR) has published a press release to remind smaller defined contribution (DC) pensions schemes that they will have to prepare ‘more rigorous’ value for money assessment as new regulations are coming into force on 1 October 2021. Elements like scheme’s costs, charges and investment returns of DC schemes with less than £100m in assets will have to be compared by trustees with three other schemes. Moreover, the self-assessment of the governance and administration of the schemes will also have to be carried out while using seven key metrics. If no value is to be found from their scheme following these assessments, trustees will have to wind up and transfer their members to an alternative scheme or explain steps taken to alleviate these gaps.