Commenting on the TPR and FCA announcement on plans to develop common Value for Money (VFM) measurements, Laura Andrikopoulos, Head of Governance, Hymans Roberson, says:

“We are pleased to see the FCA and TPR recognising the complexity in identifying a few simple metrics to compare value for money in DC pension schemes. Whilst we welcome greater transparency and consistency in this area, particularly between Trust and Contract-based schemes, an overly simple approach may give misleading impressions of value. For example, lower costs but a poorer quality investment strategy and little flexibility at retirement do not necessarily represent better member outcomes or value than a higher cost scheme. A few simple metrics won’t necessarily bring a level playing field for all DC members. It is vital that the focus is not just on cost but on long term member outcomes.”