Category: VFM

  • Scale is now law. What has to go right for it to pay off?

    , , ,

    The Pension Schemes Act 2026 requires DC multi-employer schemes to hold at least £25 billion in a main scale default arrangement by 2030 to remain qualifying for auto-enrolment, with a transition pathway to 2035 for schemes that hold at least £10 billion by 2030 and a credible plan to reach scale. Supporters say scale raises…

  • Regulators face a recurring problem

    ,

    How do you ensure accountability without removing the judgement that good decision-making requires? There is no cost-free answer; metric-based systems cost less to administer but can distort behaviour, while qualitative supervision is more flexible but can place greater demands on regulators and schemes. The VFM framework was introduced to address the problem of high charges…

  • Why DC struggles to follow LGPS

    , , , ,

    Defined Contribution (DC) schemes are under growing pressure to back UK growth, but the example they are told to follow – the Local Government Pension Scheme (LGPS) – has some advantages they cannot easily replicate. Border to Coast’s £500m UK opportunities strategy shows what can be achieved when funds pool and commit to illiquid assets.…