Following the Commons public accounts committeeís criticism of the Pension Regulatorís overseeing of money purchase or defined contribution schemes, Aon Consulting has issued the following comment.
Don't forget to register to attend the Biggest Online Recruitment Event of the Year - Click here and complete the form and a member of the Onrec.com team will be in touch
Helen Dowsey, principal in the benefit solutions division, said: ìThe Commons public accounts committee has been rather severe on the Pensions Regulator by saying that is has been inactive in its overseeing of money purchase schemes. On the contrary, the Regulator has actually been very active in paying attention to these schemes.
ìOver the last 18 months or so the Regulator has issued a series of documents specifically addressing the risks facing members of defined contribution (DC) work-based pensions. It has identified the five main areas of risk that employers should be addressing and two of these key areas are lack of member understanding and poor investment practices.
ìThe guidance from the Regulator states that employers and others involved in operating DC plans should be looking at how to mitigate the risk to members and how to educate members to understand the risks of investing in different asset classes. This, together with clear advice about engaging them to review which funds they invest in, is a key part of the guidance. The Regulator has even published clear case studies in language that members can understand.ì
Aon Consulting surprised at PAC's criticism of the Regulator
.
