Value for Money (VFM)

Value for Money (VFM) assessments for defined contribution (DC) pension schemes are a regulatory requirement, but they can also be a powerful way to strengthen governance.

Our approach helps turn a compliance task into clear, practical insight, giving trustees a regular view of scheme suitability and the actions needed to deliver better outcomes for members.  

Trustees must report on their conclusions through the annual governance (Chair's) statement, in online disclosures and via the annual scheme return.

We make the process clear, straightforward and easy to work through.  

Our approach to VFM assessments

We provide interactive reporting that brings VFM to life. This includes both absolute VFM assessments – considering your scheme on its own merits – and relative VFM assessments, comparing it against other options in the market.  

We present the findings through our interactive tools, using dashboards, benchmarking and year-on-year comparisons to give you clarity and confidence.

Trustees can quickly filter areas where VFM is or isn’t being delivered.

This enables trustees to really explore and understand the analysis, and determine what action to take to improve VFM in future years.

We also support trustees in preparing the Chair’s statement and online disclosures, including the required costs and charges illustrations – reducing compliance risk and saving valuable time.  

Meeting statutory requirements for schemes under £100m  

Our interactive VFM tool is designed to meet statutory requirements for schemes under £100m.  

It uses interactive dashboards to identify the factors that strengthen or reduce value, and to explain the reasoning behind each element and the overall outcome.

The assessment covers three components: costs and charges, net investment returns, and administration and governance. The first two are benchmarked against three comparator schemes, while the third is a self-assessment based on seven prescribed metrics.

Does your arrangement have assets less than £100m?  

For schemes under £100m, regulations require default arrangements and self-select funds to be benchmarked against comparators. Our scheme database and strong relationships with leading DC providers help us identify the right comparators and provide meaningful benchmarking.

This ensures the comparators we use are relevant to your scheme and workforce.