The UK Government and regulators are set to introduce a 'traffic light' rating system for workplace pension schemes aimed at enhancing transparency and improving value for savers. Under the plan, schemes will be rated red, amber, or green based on performance metrics including costs, investment performance, and service quality. The initiative, driven by the Department for Work and Pensions (DWP), the Financial Conduct Authority (FCA), and the Pensions Regulator (TPR), seeks to reduce the number of poorly performing schemes by mandating improvements or transfers to better options for savers. This reform is expected to encourage competition among pension providers and ultimately boost returns for the 16 million individuals enrolled in defined contribution schemes. In addition to these changes, the Government is exploring the consolidation of local government pension schemes, inspired by the successful Canadian model, to unlock more productive investments. Chancellor Rachel Reeves is advocating for a comprehensive review to align UK pension funds with effective investment strategies seen in Canada's elite retirement funds.