The U.K’s Pensions Regulator made its last call to the pension community to comment on its November paper on how defined contribution plans are run and their risk levels.
In the consultation report, the Pensions Regulator surveys the current way DC plans are run in the U.K. and offers ways to mitigate some of the risks it perceives in terms of plan administration practices, investment practices, plan fees and costs, and plan participant understanding of retirement plan choices.
The regulator argues that, as companies gradually adopt DC plans, it is increasingly important that “individuals understand the critical issues they need to consider in order to make decisions: whether to participate in a DC scheme, what contributions to make, investment choices and, ultimately, what annuity options to take.”