The Pensions Regulator (TPR) has published a guide designed to support trustees in understanding and engaging with the proposals set out in the recent value for money (VfM) consultation.

Earlier this month, TPR, the Financial Conduct Authority (FCA), and Department for Work and Pensions (DWP) launched a consultation on the VfM framework, which outlined proposals for pension schemes to publish performance, costs, and service quality data.

It also included proposals on moving members to better-performing schemes if required, a colour rating system to show performance, and stronger governance requirements.

In a blog post, TPR urged defined contribution (DC) pension scheme trustees to engage with the consultation to help inform legislation and, in time, TPR’s regulatory approach.

TPR director of policy and blog author, Joey Patel, highlighted what was new in the consultation and why it was so critical that trustees took part.

He introduced the new guide, titled Overview for Trust-based DC Schemes, which aims to help trustees to understand the proposals in the consultation and engage with them, including those who have not engaged with the VfM framework before.

It provides an overview of the framework and emphasises the proposals that are most relevant to trustees.

The guide also explains how assessment and reporting will work in practice, and sets out where the regulators and government are specifically seeking trustees’ views.

“Millions of people will rely on their DC workplace pensions to support them in later life,” commented Patel.

“We want to ensure they receive good value outcomes - and we know trustees want the same for their members.

“The consultation and discussion paper sets out proposals designed to make it easier to assess and compare value across the market to support better decision-making.

“We need your views to ensure we get it right. Your input will help shape the standards that will define saver outcomes for years to come.”

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