Size matters. Or it does in terms of what the government wants to achieve following the publication of two recent consultation papers into defined contribution plan consolidation. The consultations focused on how the government can accelerate the pace of consolidation of DC retirement plans with between £100 million ($136 million) and £5 billion in assets. The aim? To create greater scale and improve value for members. In particular, the government is exploring what barriers exist for schemes winding up and/or transferring their members elsewhere.
This follows announcements last year from The Pensions Regulator that signaled the start of potential DC mass consolidation, and its ruling in March this year that private-sector schemes will now have to carry out their "own value for members assessment."