The majority (55 per cent) of pension administrators believe a new value for money (VfM) framework would require a "large effort for no/little improvement for employers and members," according to a poll from the Pensions Administration Standards Association (PASA) conference.

The poll asked the audience how much effort it thought would be needed to "meet the requirements" of the VfM framework.

Just over a third (36 per cent) suggested that it would be a "large effort but worth it for employers and members," and just 6 per cent voted for "some effort but manageable."

The Pensions Regulator (TPR), the Financial Conduct Authority (FCA), and the Department for Work and Pensions (DWP) are working in partnership to develop a framework which they said would improve the value schemes deliver for savers and enable comparisons across the defined contribution pension landscape, including contract-based and trust-based schemes.

TPR has pledged to encourage consolidation and consideration of investment in productive assets by using the new VfM framework to drive public disclosure of long-term risk-adjusted net returns to help drive competition, growth, and enhanced member outcomes.

However, the audience expressed concerns about the proposals, as another live poll revealed that only 7 per cent of administrators had a "detailed plan" in place for introducing the VFM framework.

Commenting on the survey’s findings, on-stage panel members were more optimistic, as Smart Pension senior director of strategic delivery, Eve Read, described the framework as a "positive step forward" for the industry.

"It will take the focus off costs to look at both investment performance and service," she added.

Standard Life retirement savings director, Michael Ambery, agreed, stating that the new framework would improve member outcomes.

"If it looks at negatives in the industry and does something about it, it will help the industry achieve a higher bar, which will result in better outcomes for individuals."

Meanwhile, fellow panellist and XPS head of DC, Sophia Singleton, urged TPR to phase in the requirements for the single-employer trust market.

"Maybe look at a subset of the data initially and build the data set up to give them a bit of time before the costs of the framework come in."

She also suggested that the framework exclude schemes with less than a thousand members.

"A lot of these schemes have legacy benefits, guarantees and underpins, and they will be hit the hardest when it comes to this new framework," she continued.

"Will it actually deliver value if they do all the extra work and still may not be able to consolidate?"

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