The Financial Conduct Authority (FCA) and the Department for Work and Pensions (DWP) have extended their consultation period for the planned Value for Money framework by two weeks.
The DWP updated the deadline this week, extending the consultation period until 15 September. The department stated on its website that the change was made “following stakeholder representations”.
The DWP is leading the consultation process and will share responses with the FCA and the Pensions Regulator, with all three organisations collaborating on the regulations. The Value for Money rulebook is expected to sit across both trust-based and contract-based defined contribution arrangements.
Last month, pensions minister Torsten Bell announced that there would be a “test” period for the Value for Money regime once it is in place, applicable only to the largest providers, to give schemes time to adjust before the full effect of the system kicks in.
“Our task is to level up the quality of the pensions private sector workers receive, towards those in the public sector,” Bell said in a DWP press release last month. “For the first time, we’re making sure savers can see whether they are getting a good deal from the pension they’re saving into.
“We can’t have people working hard to earn the money they save towards retirement, only to have those funds sitting in schemes that aren’t working just as hard on their behalf.”
