Employer Pension Pledge for DC scheme value maximization ready for launch at Mansion House
The City of London Corporation has announced that the UK’s largest employers in retail, finance, and manufacturing have backed the voluntary Employer Pension Pledge. This initiative commits signatories to prioritise net returns rather than cost reductions when selecting or reviewing defined contribution (DC) pension providers, as well as demanding greater transparency regarding private market allocations. Led by the Lord Mayor of London, Alastair King, and supported by major pension industry experts, the Pledge is due to be signed at the Mansion House Financial and Professional Services Dinner on 15 July 2025. It aims to transform the UK pension investment culture by focusing on long-term retirement outcomes for over half a million workers and nearly one million savers. It aligns with the upcoming Financial Conduct Authority’s Value for Money framework and complements broader reforms, including the Mansion House Compact and Accord. Major signatories include Tesco, BT, Goldman Sachs, and Santander, with DC pension assets projected to exceed £1trn by 2030. The initiative has received robust support from government ministers and industry leaders, signaling a significant shift in employer focus towards enhancing pension value.