The UK government is proposing a traffic light system to evaluate the performance of workplace pension schemes, aiming to enhance value for money for the 16 million workers enrolled in defined contribution plans. Under this system, schemes will be rated red, amber, or green based on a variety of metrics, including investment performance and service quality, with poorly performing schemes potentially required to transfer assets to better ones. The Financial Conduct Authority (FCA) emphasizes a shift from cost-focused evaluations to value-driven assessments, which could allow investments in higher-return assets like private equity and infrastructure. This initiative aligns with the Labour government's goals to bolster retirement incomes while addressing the UK's investment gap. The FCA is inviting stakeholder feedback by October 17, and Finance Minister Rachel Reeves has encouraged pension schemes to support UK growth by investing in productive assets. Overall, this reform is seen as a significant opportunity to improve the pensions landscape.