Minister of Pensions Introduces "Dollar for Dollar" Plan
On July 22, 2025, Pensions Minister Torsten Bell hosted a landmark roundtable marking the launch of the "Pound for Pound" initiative. This initiative aims to improve the effectiveness and security of pension schemes across the UK.
The roundtable, attended by major pensions providers such as Aviva, L&G, Smart Pension, TPT Retirement Solutions, NatWest Cushon, and People’s Pension, focused on the need for more effective pension scheme management and ensuring value for money (VfM) for scheme members.
The outcomes of this roundtable are set to influence the forthcoming Pension Schemes Bill 2025, by shaping provisions to improve governance, transparency, and cost-effectiveness in pension schemes. Additionally, insights from the roundtable will inform the Value for Money (VfM) consultation, supporting the development of stronger frameworks to safeguard pension member interests and ensure pension funds deliver optimal benefits relative to costs.
The "Pound for Pound" initiative is a pilot exercise designed to test value-based metrics. The findings from this pilot will directly guide the legislative framework of the Pension Schemes Bill 2025 and will also inform the regulatory consultation on VfM, aiming to improve pension outcomes for members.
During the discussion, there was a broad consensus on the need for clearer definitions in the pensions market. Both qualitative and quantitative data will be used to assess value in the UK pensions market. The roundtable also focused on moving the UK pensions market beyond cost-based comparisons, with anonymised benchmarking being a topic of discussion.
Lessons from Australia's superannuation system were drawn upon during the discussion, signalling a global approach to pension reform. Moreover, a stronger regulatory framework for value was also a point of agreement during the roundtable.
The "Pound for Pound" initiative clearly signals a government priority on pension scheme reform focused on delivering better value and protection for members. The forthcoming Value for Money framework, to be implemented after the pilot exercise, is expected to provide a significant boost to the UK pensions market, ensuring that pension funds deliver optimal benefits relative to costs.
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