Assessing Good Value for Members: A Good Practice Guide
The Pensions and Lifetime Savings Association has published a guide for trustees on undertaking the good value assessment, in conjunction with Eversheds. From April 2015 trustees are obliged to detail the level of charges and transaction costs in their scheme and assess the extent to which their offer value for members. The results of this assessment must be presented in their Chair’s annual governance statement.
The Association’s guide offers trustees a step-by-step framework for undertaking the assessment, as well as providing some practical tips and pointers. It suggests trustees conduct the assessment by way of 6 steps:
- Setting out your approach
- Identifying costs and charges
- Assessing benefits/quality
- Benchmarking
- Taking remedial action
- And recording outcomes and reporting
The guide also explores issues surrounding cross-subsidies, the distribution of costs across employer and member and the value to members offered over time.