How can employers get the most from their DC schemes?

How can employers get the most from their DC schemes?

30 Apr 2025

This edition of XPS Express considers current developments in the market for defined contribution (DC) pension schemes and what employers can do to maximise outcomes.

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Key Developments: At a glance 

• New Value for Money (VfM) requirements for own-trust DC schemes are expected to be introduced within the 2025 Pension Schemes Bill, resulting in a likely increase in costs and governance burden for employers.
• With April 2025’s increase to employers’ National Insurance (NI) rates to 15%, material savings are available to employers if they use salary exchange for pension contributions.
• Returns are a major driver of value from a pension arrangement and can vary a lot across providers.
• This presents an opportunity for employers to review their providers to ensure the best outcomes are delivered to their employees, including wider member experience and benefit offering.
• Contribution structures (often unreviewed since the launch of automatic enrolment) could be under increased focus in the Government’s pensions review.

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