The wider-than-expected definition of default funds in the government’s draft regulation could mean the charge cap applies to multiple funds at a scheme, hiking governance requirements expected of managers.

A round-up of pensions and investment stories published across the FT Group – from a lack of transparency leaving pension savers in the dark, to calls for an independent body to oversee future pensions legislation.

Plus the week in numbers:

• Only nine out of 25 countries provide future benefit projections
• Pensioners will be able to take multiple smaller sums out of pensions with the first 25% tax-free
• FTSE 100 lost 1.6% on Thursday

Most read on pensions-expert.com

The pros and cons of offering drawdown to your members
Civil service scheme's online relaunch triggers engagement surge
BAE sees four in 10 agree to give up pension increases
When AE equals a B – the UK's pensions system ranked
Shoot for the stars: Why after AE staging, contributions need to rise 

And this week's social media comment looks at the Department for Work and Pensions consultation on the auto-enrolment threshold. 

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The National Association of Pension Funds Annual Conference 2014 in Liverpool was in full swing today, with panel discussions on auto-enrolment, collective defined contribution, independent governance committees, to name just a few.

The day kicked off early, with what I can imagine to be a few sore heads, with a session on SME auto-enrolment.

Representatives from Nails Inc, Interconnect IT and General Welding Supplies explained their AE experience – and did not paint the prettiest of pictures.

The SMEs were unsure which providers would take their business and said AE websites could be clearer.

Smaller employers discussing auto-enrolment: "unfortunately google doesn't have all the answers" #NAPFannual

— Richard Wilson (@richardjswilson) October 16, 2014

Conflicting messages from providers. NEST said to Interconnect IT 'come back when you reach your staging date'. #NAPFannual

— Kate Boyle (@KateBoylePR) October 16, 2014

But...

Nail Inc told by their providers. 'You should have come to us a year ago' #NAPFannual

— Kate Boyle (@KateBoylePR) October 16, 2014

Val Allen of General Welding Supplies told delegates that having to re-enrol staff every three years was an admin "nightmare".

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The National Association of Pension Funds today kicked off its yearly extravaganza – or 'conference', more formally – the industry meets to discuss all things pensions.

There is much to discuss this year thanks to chancellor George Osborne's flexibilities introduced in the Budget. 

The event opened with the NAPF's chair Ruston Smith trumpeting auto-enrolment, saying it is making saving for retirement a habit.  

But he asked for more clarity from the government on pension reforms.

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It has been another couple of days of announcements in the ever-changing world of pensions.

While the focus lay on the Treasury’s publicity drive over its Budget 2014 reforms, European pensions authorities issued a consultation on the holistic balance sheet and the UK government a consultation on governance in local authority pensions.

Solvency II by another name?

Yesterday, the European Insurance and Occupational Pensions Authority issued a consultation on solvency for pension schemes, which looks at the holistic balance sheet and solvency requirements for schemes.

The European commission had previously pushed back the solvency requirements, however the consultation gives consideration to the value of employer covenant and how solvency requirements might be applied.

Source: EIOPA

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Auto-enrolment has pushed the rating of the UK’s public and private pensions up the ranking of the world’s best pension systems, but greater participation or contributions are needed to reach the level of Australia or even Chile.

The UK scored 67.6 out of a possible 100 this year, up from 65.4 in 2013, placing it ninth in the world according to the 2014 Melbourne Mercer Global Pensions Index.

The Mercer index takes into account a basic public pension, a public mandatory and contributory system, a private mandatory system, a voluntary system and support for elderly people outside pensions.

Denmark was deemed to have the best pension system, receiving an A rating due to its well-funded system with good coverage, “high level of assets and contributions, the provision of adequate benefits and a private pension system with developed regulation”. 

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Schemes are being advised to assess the cost of completing an annual valuation of asset-backed contributions, after the Pension Protection Fund announced non-property ABCs will be considered in levy calculations.

The Pension Protection Fund will now require schemes to provide proof of the value of asset-backed contributions used to reduce levy bills, as part of the lifeboat's amendments to levy calculations.

The changes were as a result of the triennial consultation on levy rules, which ran from May to July of this year. It was also the first consultation since Experian was appointed as the insolvency risk provider.

David Taylor, director of strategy at the PPF, said the responses to the new model on the whole were positive, but there were some areas of concern.

One was the treatment of asset-backed contributions. According to the consultation response, the PPF will now consider all asset types, not just UK property.

Taylor said there had been concerns by both the PPF and the Pensions Regulator about some of these assets and the value attributed to them. 

“[ABCs] come in lots of different guises and some of them are more likely to be valuable to us if a company were to go bust,” Taylor said.  

Schemes with ABCs will need to certify some information for the PPF, and that information will be used over and above what is in the accounts, he added. 

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The British Coal Staff Superannuation Scheme is unwinding its hedge fund holdings and increasing its property, the latest high-profile fund to drop an asset class beset by fee and transparency concerns.