The PMI has welcomed refinements to Value for Money proposals announced by the Financial Conduct Authority (FCA), the Department for Work and Pensions (DWP) and The Pensions Regulator (TPR), but has warned against complacency.

The Pensions Management Institute (PMI) supports the overarching ambition of a robust value for money framework that improves outcomes for savers and welcomes the fact that Government and regulators have listened to industry feedback and refined the Value for Money proposals in several important areas.

The shift towards a more focused set of cost and performance measures and streamlined service quality indicators reflects a more practical and proportionate approach. We are also pleased to see a broader comparator group and a four‑point rating system that recognises top performers. These changes respond directly to concerns raised by the PMI about fairness, competition, and the need to avoid herding schemes towards a single ‘acceptable’ standard.

However, the framework must work in practice. Schemes are already managing significant operational pressures, and the cumulative burden must remain proportionate to the benefits delivered for savers. Clear, accessible communication will also be essential if VFM assessments are to support, rather than confuse, members. We look forward to working with DWP, FCA and TPR on the detail, in particular as part of their work with the industry on the detail of the engagement metrics.

We continue to emphasise the importance of aligning the VFM framework with the wider focus on long‑term value and improved saver outcomes. A consistent, comparable approach across contract‑ and trust‑based schemes is vital.

The PMI will work closely with members to ensure the final rules are workable, proportionate, and genuinely supportive of better outcomes for savers.