Helen Ball comments – TPR reviews value for member assessments in DC
The Pensions Regulator has launched a review into value for member assessments in defined contribution funds, with a view to boosting better outcomes for members of smaller schemes.
There are four key areas the pensions watchdog expects trustees to consider as a minimum when they assess value for members, including scheme management and governance, administration, investment governance and communications.
However, the regulator believes many trustees of small and micro schemes may not be properly assessing value for members.
Its thematic review, launched on Monday, will look at the explanation of the value for member assessments made by 100 small and micro schemes in their chair statements. A report on the findings is due to be published in summer 2018.
Trustees are required to carry out a value for member assessment every year. The regulator said this can help trustees identify and address poor-performing areas, and can lead to better outcomes for members.
The watchdog also said the findings of its review will allow it to understand the challenges trustees face when conducting the assessment.
Trustees should have their own view
Helen Ball, partner at law firm Sackers, said that when conducting a value for members assessment, it is important to make sure “it’s the trustees views that are being recorded and discussed, rather than the views of any consultants they may be working with”.
Read the full article in Pensions Expert. (subscription required)