Commenting on The Pensions Regulator (TPR)’s 2022 DC schemes survey published July 2023, Rona Train, Partner, Hymans Robertson, said:

“The statistics show that small schemes are not receiving value for members’ money. And the proportion of schemes not knowing about the Enhanced Value for Members assessment is very worrying.

“TPR is absolutely right to push these schemes towards better governed master trust arrangements. But what is vital is ensuring that those members get the best possible deal when they do move to a master trust arrangement. It would be simple for employers simply to move their ongoing pension arrangements to the provider which offers the lowest fees. But this may well not deliver the best long term outcome for their members. It’s important that a proper selection exercise takes place for the new provider, taking into account all aspects of future provision including projected member outcomes, the quality of administration and member engagement. Otherwise we’ll simply move the small scheme issue to a large extent into master trust world. TPR should also help coach the trustees of these less well-run schemes when moving assets across to negotiate on aspects like out of market risk and transition costs.”