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Government calls for evidence on pension scheme quality

The Government has launched a call for evidence into quality standards in workplace defined contribution (DC) schemes in an effort to protect savers automatically enrolled into a pension.

The Government is seeking evidence on the current state of pension scheme governance, default options, administration and record-keeping, and the scale of schemes.

It will also look at how conflicts of interest in the running of schemes are managed, how default options are designed and selected, and how schemes administer pension pots.

Minister for pensions Steve Webb (pictured) said when workers choose to pay into a workplace pension scheme few will have chosen the scheme they join.

"They trust the people managing their pension to be doing everything they can to ensure they receive a decent return when they retire," Webb said.

"While we know standards in DC schemes have been improving, we want to make sure all pension providers have key quality standards in place to protect their members."

Responses to the call for evidence will inform the development of a set of minimum legislative standards. 

TUC general secretary Frances O'Grady welcomed the call for evidence.

"The law rightly requires auto-enrolment into a workplace pension, but in return every saver must be guaranteed that they are in the best possible scheme," she said.

"This assurance is even more important if the Government persists with a pot-follows-member approach to consolidating small pots. Quality schemes need to have low charges, sensible default funds and governance that acts exclusively in the interests of members."

The call for evidence is aimed at people designing, advising on and running work-based defined contribution schemes.

It will run until 9 September 2013.