But Trott said the DWP has come forward with “a solid proposal for the flow” in terms of the default consolidator, and a carousel model.
“We haven't said what we want to do about the flow,” she said. “At the moment, we're going to take more time to talk to people about that for exactly the reason that you outline.
“There is no perfect solution to this. If there was a perfect solution, we would have done it already.”
Elsewhere, the DWP also said it was moving forward with a number of the proposals within its value for money (VFM) framework.
In a joint publication by the DWP, the Pensions Regulator (TPR) and the FCA, they said the framework intends to retain proposed reporting periods of one, three and five years, with 10 and 15 if available, to allow investment returns to be evaluated over appropriate periods of time.
This comes following the VFM consultation paper in January which proposed that pensions schemes will be required to disclose investment performance, net of all costs, as part of the new framework.
Trott said: “The value of money scheme is a response to the consultation and we're not proposing changes to the charge cap but what we're saying is when we're looking at the assessment of defined contribution schemes, we need to look not just at costs, but also about returns and service quality.
“We propose some metrics within that in terms of how they'll be judged, and the information that those schemes need to provide.
“We've also said that the regulator will have the powers to take action on the back of this so that where schemes are underperforming, they can be asked to improve, consolidate or exit the market and that is really important because it gives the value for money scheme teeth.”
She argued that this will mean there will be consistent information provided around the metrics that its talked about, but also the ability for the regulator to intervene when that's not being met.
sonia.rach@ft.com
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