EMPLOYERS offering defined-contribution pension schemes will need to meet stricter standards in future, the UK’s pensions watchdog will say today as it starts a consultation on new principles for schemes to comply with.
The Pensions Regulator is setting out six new “principles” for pension providers covering the features schemes should include, their governance and administration.
“At present defined contribution standards are mixed, with too many schemes providing poor value for money,” said Pensions Regulator chief executive Bill Galvin.
But Jim Bligh, head of employee relations at business lobby group the CBI, warned against putting too large a burden for schemes onto employers.
“In defined contribution schemes employees also have responsibility to keep track of their investments,” he said. “Businesses have had a bad experience with the regulation of defined benefit schemes and employers will be looking for reassurance from the regulator that it won’t be repeating this mistake.”