OFT decision not to refer DC pensions to competition commission could prove to be a triumph of hope over experience

Commenting on the decision today (Tuesday) by the Office of Fair Trading (OFT) not to refer the defined contribution (DC) pensions market to the Competition Commission, TUC General Secretary Frances O’Grady said:

“The OFT’s indictment of the DC pensions market was damning. To then decide that such overwhelming market failure will now be voluntarily cleaned up without a reference to the Competition Commission may well prove to be a triumph of hope over experience.

“Expecting competition alone to guarantee good consumer outcomes is a mirage. Pensions will only work for employees when we get the right mix of competition, effective regulation and good governance.

“The best guarantee is ensuring that pension schemes are run by trustees exclusively in the interests of their members.”

NOTES TO EDITORS:

- The OFT decision can be found at www.oft.gov.uk/OFTwork/markets-work/pensions/#.UvoxkBtFDcs

- The TUC is organising Fair Pay Fortnight from Monday 24 March to Sunday 6 April. It will be a series of events across England and Wales to raise awareness about falling living standards. www.fairpayfortnight.org

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @tucnews

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