Hogan Lovells

Key Dates

Future of the defined contribution pension market: the case for greater consolidation published on 21 June 2021.

The call for evidence closes on 30 July 2021 


The DWP has issued a call for evidence aimed at understanding the barriers to further consolidation of occupational defined contribution (DC) pension schemes in the UK.  It follows consultation in September 2020 on new regulations to require trustees of schemes which have existed for at least three years and which have less than £100m in assets to justify their continued existence via a more detailed value for members (VFM) assessment, including a comparison of their scheme’s net returns with those of three larger schemes. 

Following the call for evidence, the Pensions Minister intends further action on consolidation, starting with schemes up to £5bn of assets, and has asked for views on how to incentivise the consolidation of schemes with between £100m and £5bn of assets.

The call for evidence was issued alongside the DWP’s response to consultation on performance fees and aspects of ensuring VFM, plus final statutory guidance on reporting costs, charges and other information; and on completing the value for members assessment and reporting net investment returns.

Potential barriers to consolidation which the government has already identified include:

Other areas the DWP asks for input on include:

Date Accessed: 28/05/2022