Pensions - Articles - PLSA comment on latest DWP review on pension charge cap


The Pensions and Lifetime Savings Association (PLSA) comments on the DWP Review of the Default Fund Charge Cap and Standardised Cost Disclosure.

 Nigel Peaple, Director Policy and Advocacy, PLSA, said: “We are pleased to see the level and composition of the 0.75% defined contribution pension charge cap retained following DWP’s review. The cap is an important consumer protection, ensuring savers receive better value for money from their pensions, though in practice most DC schemes’ are already offering great value to their members by offering default funds that operate well below the cap.

 “Setting a minimum balance of £100 below which flat administration fees cannot be applied will protect the pension savings of workers with the lowest pension balances but a longer term solution to the small pots issue must be developed. It is important the government continues to consult with the industry on this issue via the Small Pots Working Group as well as on future increases to flat fee balance minimums to deliver a successful automatic enrolment market that works for all savers.

 “We are also pleased to see DWP recognise the success of the Cost Transparency Initiative, the industry standard for investment cost data developed by the Pensions and Lifetime Savings Association (PLSA), the Investment Association (IA) and the Local Government Pension Scheme (LGPS) Advisory Board. There has been widespread take-up among asset owners and we encourage all pension schemes to adopt the standard.”
  

Back to Index


Similar News to this Story

State Pension Age Review assumes triple lock remains
But could be ‘false comfort’ for younger generations. Continuing triple lock could come at the expense of further and faster increases to State Pensio
Comments on DWP papers and announcements
Hymans Robertson comments on the documents and papers announced by the DWP ahead of Phase Two of the Pensions Review.
Pensions Commission must rethink pensions from the bottom up
Peoples Pension, ACA, XPS and Hymans Robertson comment that the Pensions Commission must rethink pensions from the bottom up

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

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