08/02/2012
By Laura Blows
The NAPF recommended SuperTrusts as the solution for DC’s current problems at the NAPF chairman’s dinner last night.
NAPF chairman Mark Hyde Harrison, speaking at the event, described a “bold vision” for the future of DC as looking “pretty simple”.
“And that must have a lot to commend it to savers and policymakers alike. And it looks like something which is working on the side of the saver, and where there is good governance to ensure that the scheme is aligned with the members’ interests. And it looks like something which offers good value and good outcomes. The answer is always SuperTrusts, so what’s not to like?” he said.
According to Hyde Harrison, the trustees of trust-based DC schemes need to raise their game too, but a change to the status quo is needed to get the best outcomes.
Hyde Harrison also announced that the NAPF will launch research on Thursday with the Pensions Policy Institute into the drivers of good and poor member outcomes in DC markets. He added that the NAPF is also developing a code of practice on the transparency of costs and charges and will deliver its recommendations later this year.
Describing the current problems with DC, Hyde Harrison cited the NAPF research with the Pensions Institute, published last weekend, which found that inefficiencies in the annuity market cost consumers £1bn a year.
However, the chairman highlighted positive steps to improve DC, such as auto-enrolment, Minister for Pensions Steve Webb’s ‘operation big pots’, The Pensions Regulator’s six DC principles to raise standards and HM Treasury’s work on the OMO review.
“This is all good stuff. But I think it risks missing the trick. We really should be thinking radically and with joined up vision. And we really do need ambition,” he explained.
