- LawDeb believes £5bn threshold for encouraging schemes to consider consolidation is far too high at this time
- Consolidation is not the correct route for all schemes, or their members
- Value-for-members assessments will be more objective if they are carried out by an independent third party
Law Debenture (LawDeb) has today submitted a response to DWP’s consultation on DC consolidation.
LawDeb gave a qualified welcome to the DWP’s drive towards DC consolidation, but considered that there are many well-governed own trust DC schemes much smaller than £5bn that can offer good value to members and that may contain bespoke features that could be lost on transfer to a master trust. The key, whether you are talking about a master trust or an own trust arrangement, is good governance, not size.
LawDeb also proposes that objective value-for-members assessments can best be carried out by an independent third party, rather than by the trustees or advisers reviewing their own standards of governance.