Commenting on the DWP Consultation, 'Value for Money: A framework on metrics, standards, and disclosures', Laura Andrikopoulos, Head of Governance, Hymans Robertson, says:

"We are pleased to see today’s consultation from the DWP, and it is clear that feedback from the pensions industry surrounding value for money (VFM) has been listened to and included reflecting previous concerns. The commitment to change thinking from cost focus to long-term outcomes is much welcomed, however we would like to see this go further and for the metrics approach to include consideration of explicit outcomes metrics. The long-overdue approach for small schemes and residual members is a strong signal that pleas for greater pragmatism and proportionality have been heeded. The lack of focus on governance while disappointing is understandable, with a metric approach still favoured and the issue of quantifying remaining a complex challenge for many.

“We welcome the radical reform of the Chair Statement and believe this is very much overdue given the way the document has evolved into a long and complex compliance document since its inception. We hope the final response following the consultation will result in significant changes to the current requirements, and eagerly await further details on the impact this will have within the DC pension marketplace.”