LONDON, Jan 30 Reuters Britain said on Monday it will launch a public consultation on new rules requiring higher disclosure standards from private pensions schemes to give savers better value for money and prevent providers from gaming the system.

Pensions minister Laura Trott said the shakeup of private pensions will also include reform of the charge cap on a company39;s default defined contribution DC pension schemes that employees are offered or autoenrolled in.

The aim is to close an inequality gap between DC schemes and defined benefit or DB schemes, where typically more generous payouts are linked to an employee39;s past earnings. These schemes are being phased out to new employees due to cost. DC pension schemes39; performance is tied to swings in stock and bond markets.

The value for money framework will improve transparency, comparability, and competition between defined contribution pension schemes and help deliver the best possible value and longterm outcomes for pension savers, Britain39;s ministry for work and pensions said in a statement.

Being in an underperforming pension scheme can lead to someone missing out on thousands of pounds.

Encouraging a cultural shift across the DC pensions market from focusing on cost to overall value will also encourage market consolidation, allowing more schemes to benefit from the economies of scale, the ministry said.

Schemes would have to disclose their investment performance, costs and charges, and quality of…