In our August edition of Vision, we discussed the final guidance on the new rules and requirements for trustees to undertake a value for members assessment. These new requirements apply to all trust-based schemes with less than £100m assets under management that have been established more than three years ago.
Under the new requirements that come into force from October 2021, (although these only apply to the first scheme year ending after 31 December 2021), trustees will need to compare their scheme’s charges and investment performance to three large schemes, as well as undertake a wider assessment of the value provided. Importantly, trustees will be required to report their findings to TPR and take action should they identify that they do not provide equivalent or better value.
In September 2021, TPR issued a press release reminding small schemes of the new requirements. Underpinning its stance David Fairs, TPR’s Executive Director of Regulatory Policy, Analysis and Advice, commented: