Pensions - Articles - Hymans Robertson comments on tPR's Code of Practice 13

 “For us, one of the most important questions remains how you best quantify the definition of value for money for members of DC schemes, and what constitutes that value. At present, value for scheme members has a very narrow definition. It only covers things that members actually pay for and where costs are shared with the sponsoring company. In reality, companies pay for other things that generate value for members, such as good governance and in some cases, administration. Both can and do drive better outcomes.

 “At present, value for money is defined in 4 categories: investment, administration, communications, and governance and management. The missing piece is retirement, which is a key determinant of successful outcomes. Any rating of a scheme’s value for its members has to include this aspect. Without that, all the work done by schemes when members save risks being undone if there isn’t the right support to ensure good decisions are made at retirement.”