Pension transfer systems have countered concerns raised by industry figures that implementing pot-follows-member could result in high costs, which may be passed onto members.

Collective schemes – which pool members’ assets and risk – will have to comply with new valuation and reporting requirements, under initial proposals outlined yesterday in the Queen’s Speech.

Industry figures have called for better guidance for defined contribution members to help them choose the appropriate level of risk pre-retirement to achieve their target outcomes.

Marsh & McLennan Companies, the US-based parent of global consultancy Mercer, has decided to close its UK defined benefit scheme to future accrual in a stated attempt to create a level playing field between employees.

Providers are revising products offered to defined contribution pension scheme members to incorporate greater risk in the decumulation phase, as a result of the greater flexibility afforded by the Budget.

Schemes using online data analytics systems to inform investment and risk-management decisions have been urged by system providers to put in place governance procedures to ensure data security. 

Two employers have explained how they make sure trustees are regularly trained, after a Pensions Regulator survey shows half of schemes do not have a training plan.

Clwyd Pension Fund has allocated 2 per cent of its assets to timberland and agriculture, attracted by the chance to earn higher returns and hedge against a rise in inflation.

Industry experts have warned that schemes using LDI strategies may face higher costs and additional risks when the European Market Infrastructure Regulation’s collateral diversity requirements come into force.