Value for Money (VFM)

VFM assessments are a regulatory requirement – but they can also be a powerful governance tool. Our independent approach turns compliance into clarity, giving trustees a regular view of scheme suitability and the actions needed to deliver better outcomes for members. 

Trustees must report on their conclusions through the annual governance (chair's) statement, in online disclosures and via the annual scheme return – we make this process clear and manageable.
 

Our approach to VFM assessments

We provide interactive reporting that brings VFM to life. This includes both absolute VFM assessments – considering your scheme on its own merits – and relative VFM assessments, comparing it against other options in the market. 

Findings are presented through our interactive VFM module in the Governance, Engagement and Monitoring (GEM) tool – using dashboards, benchmarking and year-on-year comparisons to give you clarity and confidence. 

Trustees can quickly filter areas where VFM is – or isn’t – being delivered, track changes year-on-year, and identify where improvements are needed. 

This enables trustees to interrogate the analysis and determine what action to take to improve VFM in future years. 

We also support trustees in preparing the Chair’s statement and online disclosures, including the required costs and charges illustrations – reducing compliance risk and saving valuable time. 

Meeting statutory requirements for schemes under £100m 

Our interactive VFM tool is designed to meet statutory requirements for schemes under £100m. 

It uses interactive dashboards to identify the factors that add or detract value, and to explain the rationale behind component and overall outcomes. 

The assessment covers three components: costs and charges, net investment returns, and administration and governance. The first two are benchmarked against three comparator schemes, while the third is a self-assessment across seven prescribed metrics. 

Does your arrangement have assets less than £100m? 

For schemes under £100m, regulations require default arrangements and self-select funds to be benchmarked against comparators. Our scheme database and established links with leading DC providers allow us to identify the most appropriate comparators and provide meaningful benchmarking. 

This ensures the comparators used are relevant to your scheme profile and workforce. 

The benefits of working with us 

• Independence and market insight to ensure credible, transparent assessments. 
• Interactive, data-driven reporting through GEM. 
• Clear support with statutory disclosures and Chair’s statements. 
• Practical recommendations to improve future VFM ratings. 
• Better outcomes for members and greater confidence for trustees.