Firms were positive today about the new standards issued for DC schemes by the Pensions Regulator.
The regulator has issued a consultation on new standards for defined contribution schemes due to the growth of auto-enrolment.
Auto-enrolment will see millions of people enrolled into pension schemes for the first time and the regulator wants to ensure they receive a good outcome.
It has issued six measures which include 31 DC quality features on areas such as contributions, investments and administration. It has also proposed a code of practice and made it clear firms are expected to ensure their schemes are well-run.
Bill Galvin, chief executive of the Pensions Regulator, said: "We expect all DC schemes to demonstrate how they will comply with our principles for good DC schemes and this will give employers reassurance about their choice of scheme.
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"Members bear risks where DC schemes perform poorly. Many members will not have any experience of DC pension savings so it's vital that schemes are run by capable people who act in members' interests from enrolment to retirement."
He said smaller schemes may find the new standards "challenging" but that larger schemes would have the necessary resources to comply.
John Lawson, head of policy for corporate benefits at Aviva, said: "Strong governance and effective regulation is key to ensuring the delivery of good member outcomes. The Pensions Regulator has recognised the extensive governance already in place for contract schemes, such as group personal pensions, covering Treating Customers Fairly and other FSA requirements. So it makes sense to build on this for trust-based schemes as well."
Richard Parkin, head of proposition, DC and workplace savings at Fidelity, said: "We welcome the Pensions Regulator's consultation on delivering good quality DC schemes. The focus on DC member outcomes is exactly what we need if we want to ensure that auto-enrolment and DC saving is a success."