DC market enters ‘second act’ with sharper focus on member outcomes, says TPR at LCP conference

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LCP has welcomed The Pensions Regulator’s commitment to “raising the bar” on member outcomes as the DC market matures, following comments at LCP’s DC and Financial Wellbeing conference.

In conversation with former Pensions Minister and LCP Partner Steve Webb, TPR’s Director of DC and Master Trust Supervision Kim Goodall Brown highlighted TPR’s work with the FCA on Value for Money (VFM) requirements and the importance of measuring value consistently using agreed metrics, while emphasising that this should not “dilute” the role of trustees. She also set out her hopes for the future, looking ahead to 2030, with a focus on better run schemes, greater value and innovation to strengthen member outcomes.

The discussion also reflected the direction of travel towards fewer, larger, better run schemes, while acknowledging that single employer schemes can also have benefits. Kim highlighted the opportunity to better leverage the influence of a small group of decision makers within these structures, particularly through more effective use of data and research to drive better member outcomes.

We welcome TPR’s strong focus on improving member outcomes and its continued engagement with the wider industry as these proposals evolve. We hope that this dialogue continues, as getting the balance right will be crucial to ensuring the framework delivers real benefits for savers

Helen Shackelford Partner at LCP

As the DC market moves into its second act, the focus is firmly on improving member outcomes and what savers ultimately receive. Value for money is a key part of that, helping to provide greater clarity and consistency across the market, but it needs to work alongside trustee judgement, not replace it.

Kim Goodall-Brown Director of Defined Contribution and Master Trust Supervision at TPR