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Employee Benefits News

Latest News
08 Jul 2013

Government Looks To Establish DC Schemes Standards

The government has called for evidence into the quality of working standards in defined contribution pension schemes, in an attempt to ensure automatic enrolment offers protection to those saving for retirement, Money Marketing reported.

UK pension minister Steve Webb announced that the call for evidence will be looking into views from different industry representatives relating to standards for scheme governance, administration, record keeping and default strategies, amongst others. These are the minimum legislative standards that the government sees as necessary for auto-enrolment regulation, Webb explained.

Although it is true that the majority of workplace pension schemes offer good value to their members, there are certain schemes that may not be up to the standards expected from them, the pension minister stated. It is essential to make sure that all schemes protect savers because when they are automatically enrolled or transferred, they are not actually making an active choice about where to invest their money, he added.

Moreover, since pensions are long-term investments, the actual outcome for members may not be immediately apparent, so adequate protections should be put in place to ensure that all schemes are run in members´ best interest, Webb went on.

With this call for evidence, the government wants to establish the most appropriate legislative standards that would result in high quality performance from every defined contribution scheme, Webb concluded.

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