Pensions - Articles - Any pension Charge Cap changes must improve members outcomes

The Pensions and Lifetime Savings Association (PLSA) see no case for removing performance fees from the Defined Contribution (DC) Charge Cap, arguing that any potential changes must demonstrate a positive impact on members’ outcomes.

 The statement comes as part of the PLSA’s response to the government’s consultation on enabling investment in productive finance.

 Joe Dabrowski, Deputy Director of Policy, PLSA, said: “The PLSA sees no case for the exclusion of performance fees from the DC charge cap. We believe that this risks diluting an important protection for Automatic Enrolment (AE) savers, without sufficient evidence at this time to demonstrate a change is needed or higher fees will improve member outcomes.

 “Given the various other developments in this area over the past year – including the introduction of a mechanism to ‘smooth’ the calculation of performance fees over five years, and the introduction of a new fund framework to help investors make long term investments – industry needs time to implement, develop and review their effectiveness before making further changes. The underlying structural dynamics of the current AE market are also unlikely to result in the proposed changes succeeding in its intended goal.

 “The PLSA supports the Government and the wider pensions industry taking a long-term view to the barriers to long-term investment for DC schemes, and would like to see more consideration of existing operational barriers, the impact of an uncertain regulatory environment, and how the supply of appropriate products might be improved. However, what is vital is that all policy interventions that are made are done so with long-term interests of pensions savers in mind.”

Back to Index

Similar News to this Story

Half of pensioner homeowners do not check State Benefits
Pensioner homeowners struggling with rising living costs urged to review State Benefit eligibility after new research shows nearly half have never che
Pensions are a long term investment and have time to recover
Experts from pension and investment specialists Quantum Advisory addressed members of the Chartered Accountants in England and Wales (ICAEW) on the tu
State auto enrolment credits could reduce Gender Pension Gap
The Government should introduce State auto-enrolment credits for career breaks and radically change the framework of occupational pensions to reduce t

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.