More Regulation Of Pensions Market Necessary Including Full Transparency And Cap On Sky High Charges Says GMB
Parliament made it mandatory to join a workplace pension so it has a duty to act without delay to make it mandatory that savers are not ripped off says GMB.
GMB commented on announcement that Government will be introducing new measures to require transparency for transaction charges in pension schemes. See notes to editors for copy of Written Ministerial Statement on 24th Feb 2014.
Phil McEvoy, GMB Pensions Officer, said “There now seems to be a broad consensus that increased regulation of the pensions market is necessary and that this should include full transparency of, and a cap on, costs to those buying pensions.
So while this latest announcement is welcome, what seems to be lacking from Government is any impetus to act quickly in the best interests of hard working people, so as to maximise their retirement savings and put an end to the rip off culture.
This matter has been high on the political agenda for many months and GMB can see no reason as to why the law cannot be made to act for savers without delay.
Parliament made it mandatory to join a workplace pension. It has a duty to act without delay to make it mandatory that savers are not ripped off.”
Contact: Phil McEvoy 07918 768773 or 0207 391 6700 or GMB press office 07921 289 880 07974 251 823
Notes to editors
Page 1 of 1
Written Ministerial Statement
Monday 24 February 2014
THE DEPARTMENT FOR WORK AND PENSIONS
The Minister for Pensions (Steve Webb MP): 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 remains 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.