GMB Hails 0.75% Pension Charges Cap As Important Milestone To Achieve Fair Pensions Provision
More can be done to regulate charges and to ensure members have a voice in the selection and governance of their pensions and we will continue to campaign for this says GMB.
From April 2015 a 0.75% cap on pension fund charges will be introduced for the default funds of all qualifying schemes.
This was announced by Government in the House of Commons on 27th March.
Over the next 10 years government estimates that an extra £195 million of pension contributions will turn into pension savings, rather than being swallowed up by unnecessary costs and charges.
Other pension charges will be banned altogether including payments for sales commission, charge hikes for people who are no longer employed by a company, and ‘consultancy charges’ where members have to pay for advice given to their employer.
New rules will make sure that all of the hidden ‘transaction’ costs in pension schemes are published, and the government will then consider whether these should also be included in the new charge cap.
Phil McEvoy, GMB Pensions Officer, said "Both the Pensions Minister and the Shadow Pensions Minister are to be congratulated for this very important step in reining in the shadowy practices that have tainted the pensions industry.
There is more that can be done to regulate charges made by pension providers and investment funds and to ensure members have a voice in the selection and governance of their pensions. GMB will continue to campaign for this.
However today marks an important milestone in achieving a pensions system that is fit for purpose."
Contact Phil McEvoy 07918 768773 or 0208 947 3131 or Brian Strutton 07860 606 137 or GMB press office 07921 289880