Pensions

Monday 24th February 2014 Written Statements

[The Minister of State, Department for Work and Pensions (Steve Webb)]

I am pleased to announce the Government will be introducing new measures to require transparency for transaction charges in pension schemes. Later today we intend to table an amendment to the Pensions Bill 2013 to introduce this latest step in the Government’s wider plans to ensure consumers receive value for money from their pension savings.

Transparency of costs and charges is fundamental for good scheme governance and to enabling comparison between schemes. Our amendment, which is intended for debate at the Report stage of the Pensions Bill 2013 in the House of Lords this Wednesday, will place a duty on the Secretary of State to make regulations requiring greater transparency around the transaction costs incurred by work-based defined contribution schemes.

Requiring increased transparency is the latest step in the wider Government programme to see fair charges for people who are automatically enrolled into workplace pensions. Last year, we consulted on whether to cap charges in the default funds of schemes used for automatic enrolment, and the Government remain committed to seeing this policy through during the life of this Parliament. Accordingly, our response to the consultation on charges, and further proposals on quality and transparency in workplace pension schemes, will be published soon.