The UK's Association of Consulting Actuaries (ACA) has deemed Paul Myners' investment recommendations unsuitable for smaller pension schemes.
In its response to the Treasury, the ACA fears that investment principles outlined by Gartmore chairman in his report could result in “red tape and costs” for smaller schemes.
The association also adds that incorporating brokers commissions may lead to transaction costs being hidden in other ways, including net dealings.
According to the ACA, the inclusion of projected investment returns in each asset class may prove detrimental - that returns may be vastly different from those projected and could mislead scheme members into thinking that the investment strategy is ineffective.
By Madhu Kalia
Occupational pension provision has continued to grow in value, but there remains large variance in incomes across the pensioner age group, according to latest government data.
Defined benefit (DB) schemes could have an aggregate surplus by 2021 under Pension Protection Fund (PPF) projections, its strategic plan for 2018 to 2021 reveals.
Investment consultants are failing to recommend products that outperform net of fees, the Competition and Markets Authority (CMA) has said as its investigation into the market continues.
This week's top stories included coverage of the much-anticipated defined benefit (DB) white paper and the sector's reaction.