Recent Defined Contribution related consultations

Our response to the collective defined contribution, value for money and small pots consultations.

Value for Money: A framework on metrics, standards, and disclosures

This consultation seeks views on policy proposals to require trustees and managers of defined contribution (DC) relevant occupational pension schemes and the providers and Independent Governance Committees (IGCs) of workplace personal pension schemes to disclose, assess and compare the value for money their workplace pension scheme provides.

Purpose of the consultation

This consultation seeks to gather views and evidence on the metrics, standards and public disclosure of data required under the proposed Value for Money (VFM) framework and the proposed use of this data in comparisons and assessments of VFM.

Read the full consultation here.

Isio’s response to the consultation

Read Head of Defined Contribution (DC) Pensions Richard Birkins’s comments in Professional Pensions here.

Addressing the challenge of deferred small pots

As part of this consultation, the Department for Work and Pensions (DWP) issued a call for evidence to deepen the evidence base around the scale and characteristics of the growth in the number of deferred small pots.

The consultation is focussed on two large-scale automated consolidation solutions – a default consolidator model and pot follows member – whilst recognising the potential impact of other actions, including member exchange, and enabling more member engagement, that can help mitigate the growth in the number of small pots.

Read the full consultation here.

Isio’s response to the consultation