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<p>The Department has regularly commissioned surveys on the types and levels of charges
faced by savers in defined contribution workplace pension schemes. The latest pension
charges survey was published on 17 December 2015 and can be found at:</p><p><a href="https://www.gov.uk/government/publications/pension-charges-survey-2015-charges-in-defined-contribution-pension-schemes"
target="_blank">https://www.gov.uk/government/publications/pension-charges-survey-2015-charges-in-defined-contribution-pension-schemes</a></p><p>
</p><p /><p> </p><p>It is important that savers know what costs and charges they are
paying. As a first step towards achieving this, most occupational pension schemes
offering money purchase benefits are now required to report the charges levied on
members and, as far as they are able, transaction costs, via an annual Chair’s Statement.
The Chair’s Statement, which must be given to beneficiaries and recognised trade unions
on request, must also report the trustees’ view on the extent to which these costs
present value for members.</p><p> </p><p> </p><p> </p><p>Similarly, the Financial
Conduct Authority have made rules requiring Independent Governance Committees to report
annually on the value for money offered by workplace personal pension schemes, taking
into account scheme charges and transaction costs.</p><p> </p><p> </p><p> </p><p>The
Government is also actively considering how to make the costs of pension schemes more
visible to savers, and is committed, in line with the duties of the Pensions Act 2014,
to make regulations which require information on transaction costs to be given to
members and both costs and charges to be published. To help achieve this, the Department
for Work and Pensions and the Financial Conduct Authority published a joint call for
evidence last year on disclosure of transaction costs.</p><p> </p><p> </p><p><strong>
</strong></p><p>In addition, the Chancellor recently announced that the Government
will take action to limit early exit fees by introducing a new duty on the Financial
Conduct Authority to cap early exit charges in relation to contract-based schemes,
and will mirror these requirements in relation to trust-based schemes. This will ensure
that individuals do not face financial barriers where they wish to access their pension
benefits flexibly.</p><p> </p>
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