FCA progresses framework to drive long-term value for workplace pension savers

Pension savers stand to benefit from a new proposed framework designed to shift the focus from costs to long-term value, and ultimately deliver better retirement savings.

The FCA, the Department for Work and Pensions (DWP) and the Pensions Regulator (TPR) aim to implement a joint framework for workplace defined contribution schemes.

The joint framework would be used by pension providers and those making decisions on behalf of savers to provide greater transparency over how schemes are performing.

Schemes will be compared on public metrics that demonstrate value – not just costs and charges, but also investment performance and service quality. They would, once the final framework is decided, be publicly rated red, amber or green.

Poorly performing schemes will be required to improve or ultimately protect savers by transferring them to better schemes. This should lead to better value pensions, without savers themselves having to take action.

FCA progresses framework to drive long-term value for workplace pension savers | FCA