David Barral, CEO, Aviva UK and Ireland Life Insurance, said:
"We fully support the OFT's industry-wide review into workplace pensions. Ensuring pensions offer value for money for employers and employees is critical to the success of automatic enrolment, and to building trust and confidence in long-term savings.
That's why in 2012 we made a commitment to only auto-enrol employees into modern, low-cost pension schemes with an average product charge of less than 1% per annum. In fact, the actual average charge for our new automatic enrolment schemes is 0.5%. In 2001 we also capped charges for all pre-existing legacy Group Personal Pensions at 1% or less.
We already have strong internal governance structures covering all the key elements that lead to good member outcomes. These include fund/investment governance, product and suitability governance, administration standards and complaints. However, we recognise that these governance structures are not independent. Establishing new independent committees will give confidence that we are delivering good outcomes for members.
In the UK we face the challenge of encouraging millions more people to actively put money aside for the long-term rather than relying on a State Pension once they enter retirement. Providing products and services that people know they can rely on is therefore essential.
The OFT makes a number of significant recommendations and it's essential the industry now acts upon these to ensure pension members always receive value for money.
We're confident that Aviva is well placed to act in an effective and timely manner and we will continue to work closely with government and the regulators on the next steps. "
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