Better workplace pensions
The Pensions Minister Steve Webb announced on Thursday new measures to ensure pension schemes deliver value for money for savers.
These measures include:
- From April 2015, new minimum quality standards for defined contribution (DC) workplace pension schemes. These standards will be set out in regulations.
- A charge cap for the default funds of DC schemes used for automatic enrolment. The cap, to come into force from April 2015, will be set at 0.75 per cent of funds . The cap will apply to all management charges, but exclude transaction costs. Consultancy charges will also be banned in schemes used for automatic enrolment from this date. The charge cap will be reviewed in 2017. An example of a transaction cost is a charge payable if you want to switch your pension savings from one fund to another.
- Adviser commissions and increased charges when members leave employment will be banned in schemes used for automatic enrolment from April 2016.
The strengthened governance and transparency measures will apply to all workplace DC pension schemes, protecting all members who save into a DC scheme through their employer.
If you have any pension-related queries - contact us!
Steve Webb, Minister for Pensions, said on Thursday that TPAS is 'independent and impartial'. He said that he asks everyone to tell their constituents to ring TPAS, and that he uses us himself.
Our mission is to make pensions accessible to everyone, so if there is anything you do not understand, please contact us and we will be pleased to help. To discuss any pension-related issue: