The Pensions and Lifetime Savings Association (PLSA) has responded to the Department for Work and Pensions (DWP) Improving outcomes for members of defined contribution pension schemes consultation.
Lizzy Holliday, Head of DC, Master Trusts and Lifetime Saving, PLSA, said: “The PLSA welcomes the Government’s intention to provide greater clarity for scheme trustees around how to conduct value for members assessments – and to put this guidance on a statutory footing.
“Where schemes are not currently able to demonstrate they are delivering good value, they should act to improve rapidly and cost effectively.
“However, the PLSA cautions that the proposed methodology for assessing value has limitations that may lead to some schemes pursuing consolidation that is not in the best interests of their members. Consolidation or scheme scale should not be an end in and of itself. Though there can be benefits to scale in terms of governance, access to expertise and availability of particular investment approaches, it is quality – and not the size of the scheme – which matters.”
Click here to read the PLSA’s full consultation response.
Mark Smith, Senior PR Manager
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Steven Kennedy, PR Manager
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