The Pensions Regulator is starting a thematic review into whether trustees are suitably assessing the costs and charges paid by members.
The regulator believes many trustees of small and micro schemes might not be properly assessing value.
The thematic review will look at the explanation of the value for member assessments made by 100 small and micro schemes in their chair statements.
TPR expects to publish its findings by summer next year.
TPR says the review will help it understand the challenges trustees face when conducting the assessment. It also says examples of good practice could be used for guidance.
Acting regulatory policy executive director Anthony Raymond says: “From our research and experience we believe that many small and micro schemes are failing to meet our expectations by providing a quality assessment of how their charges represent value for members. We are conducting this thematic review to better understand this position.”
Raymond says: “We are concerned about a tail of sub-scale pension schemes and strongly believe that it is unacceptable to have two classes of DC pension saver – those that benefit from the premium of scale and good governance and administration, and those that do not.”