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<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>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>The government is committed to ensuring that
members of pension schemes are also able to obtain information about all the costs
and charges which they bear. Last year, the Government and the FCA jointly carried
out a call for evidence on disclosure of transaction costs in pension schemes, and
we are currently planning our next steps.</p><p> </p><p>Many pension schemes which
invest in pooled funds do so via institutional versions of retail funds, for which
costs other than the disclosed investment management fee will be similar. Retail funds
will be covered by the Packaged Retail Investment and Insurance Products (PRIIPs)
Regulation, which will apply from the end of 2016 and provides for enhanced minimum
standards of disclosure.</p><p><strong> </strong></p><p><strong> </strong></p>
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